EURUSD Forecast

The EURUSD failed to continue its bullish momentum yesterday, bottomed at 1.3724 and closed at 1.3744 but traded a little bit higher earlier today in Asian session hit 1.3787. Not a good start for the bullish scenario. The bias is neutral in nearest term. Key intraday resistance is seen around 1.3830. There is a potential H&S bearish scenario as you can see on my hourly chart below which would be validated by an unsuccessful attempt to break above 1.3830 then move below 1.3670. As long as stays above 1.3670 price is still in a bullish intraday phase since violated the bearish channel, but I think I will stand aside for now. I will reactivate my bullish mode by a clear break above 1.3935 as the H&S bearish warning will no longer exist. However note that there is a major resistance around 1.4000 so the bullish scenario may not be so smooth at this phase. H&S or not, my bearish mode will be activated by a clear break and daily close below 1.3670, at least testing 1.3500 area.

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