EURUSD Forecast

The EURUSD was volatile but indecisive yesterday, made a Doji on daily chart. Price slipped below 1.3670 but whipsawed to the upside, hit 1.3816 and closed at 1.3731. As long as price stays above 1.3670 the bullish phase since the break above the bearish channel should remain intact, but the H&S bearish warning also remains valid as a serious challenger, just need a clear break and daily close below 1.3670 for confirmation, testing 1.3500 region. On the upside, key intraday resistance remains around 1.3830 which is a potential right shoulder area of the H&S formation. A clear break above that area could trigger further bullish pressure testing 1.3913 (the head, Monday’s high). A clear break above 1.3913 area would cancel the H&S bearish scenario, testing 1.4000 key/major resistance. Immediate support is seen around 1.3725. A clear break below that area could trigger further bearish pressure retesting 1.3670/50 key support area.

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