EURUSD Forecast

The EURUSD was volatile yesterday but overall still able to maintain its bullish intraday bias so far after found support around 1.4070. On hourly chart below we can see price is moving inside a minor bullish channel suggests a bullish outlook since the rejection to move consistently below 1.4000. However, note that the medium bearish outlook since the fall from 1.4939 remains intact and the current bullish intraday bias is just a corrective move. Price is now retesting the 23.6% Fibonacci retracement of 1.4939 – 1.3968 around 1.4200. A clear break above that area could trigger further bullish pullback testing last week’s high at 1.4344 which is also the 38.2% Fibonacci retracement. Immediate support at 1.4120. A clear break below that area could lead us to neutral zone in nearest term retesting 1.4070. Only a clear break below the minor bullish channel and 1.4000 could end the current bullish correction and continue the bearish scenario testing 1.3860 – 1.3750.

©2011 FX Instructor Forex Blog - For Traders, By Traders. All Rights Reserved.