EURUSD Forecast

The EURUSD was volatile yesterday before, during and after the ECB rate decision and press conference. The blue box area you see on my h4 chart below shows market reaction where price attempted to push lower, hit 1.3240 before whipsawed to the upside and closed higher at 1.3425. While there are some fundamental confusions/complications about the Euro zone, from a technical point of view, the fact that price strongly reject further downside momentum and closed above 1.3361 suggests further bullish pullback testing 1.3520 area. On the downside, a movement back below 1.3361 would lead price to neutral zone in nearest term but further bearish pressure can only be expected by a clear break below 1.3240. My major bearish outlook should remain intact as long as price stays below 1.3680 but price is now in a strong bullish correction phase as in general the single currency react positively to the rate decision and ECB press conference ahead of NFP number today.

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