EURUSD Forecast

The EURUSD had a significant bullish momentum yesterday, topped at 1.3697 and closed at 1.3625 after broke strongly above 1.3520 and the bearish channel as you can see on my daily chart below. The single currency gained significantly after a promise made by Angela Merkel and Nicolas Sarkozy to recapitalize the banks. Technically speaking, the violation to the bearish channel is a serious threat to the major bearish outlook, turned my short term bias to a bullish view testing 1.3787 and 1.3935. Immediate support is seen around 1.3600. A clear break below that area would lead price to neutral zone in nearest term but as long as price stays above 1.3520 my overall intraday bias should remain to the upside.

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