EURUSD Forecast

The EURUSD had another volatile but indecisive movement yesterday. There are no changes in my technical outlook. The bias remains neutral in nearest term. Price has been moving sideways between 1.3870 – 1.3607 since last week and need a clear break from the range area to see clearer direction. I still prefer a bearish scenario at this phase and only a clear break and daily close back above the 38.2% Fibonacci retracement of 1.4246 – 1.3607 and 1.3870 resistance area could cancel my bearish outlook which started since the fall from 1.4246 and the breakdown below the trend line support, testing 1.4000 area. Immediate support is seen around 1.3680 (yesterday’s low) followed by 1.3607. We still need a clear break and daily close below 1.3607 to continue the bearish scenario at least testing 1.3500. I think I will stand aside for now until we have a clear break from the range area. Aggressive intraday traders may short around 1.3870 with a tight stop loss.

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