EURUSD Forecast:

The EURUSD made another correction yesterday. The pair attempted to push higher, topped at 1.4993 but whipsawed to the downside, bottomed at 1.4881 and closed at 1.4936. On h4 chart below we can see that this was a case of a false breakout, which potentially produce significant downside correction. 1.4850 area and the lower line of the bullish channel are my important support area. As long as the pair stay above that area the bullish scenario should remains strong. Any movement below 1.4850/30 could trigger further significant bearish correction towards 1.4760/20 area and could be a potential threat to my bullish outlook. Technically I don’t have any good sign of a bearish reversal so far, so short position still not recommended. The bias is neutral in nearest term and we might have another downside correction and but overall I still prefer a bullish scenario with 1.5300 as potential target. I think we are in transition phase with 1.4850 – 1.4950/1.5000 area as critical area, so volatility and hesitation in the market are actually normal.