EURUSD Forecast

The EURUSD was volatile yesterday but overall still able to maintain its bullish correction intraday bias. The bias remains bullish in nearest term testing 1.2875 but the major outlook remains to the downside and I still prefer to sell on rallies. We have a rising wedge formation and CCI bearish divergence on hourly chart and I expect the current bullish momentum is to be short lived. Immediate support is seen around 1.2750. A clear break below that area could trigger further bearish pressure testing 1.2700 – 1.2625/41 key support area. On the upside, a clear break and daily close above 1.2875 could trigger further bullish pullback testing 1.3000 area.

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