EURUSD Forecast

The EURUSD had a significant bearish momentum last week, broke below the triangle after a false breakout above the triangle as you can see on my h4 chart below. This fact confirms the bearish correction continuation scenario since the fall from 1.4939, testing the lower line of the major bullish channel (white) and 1.4000 support area. The bias remains bearish in nearest term but note that as long as the bullish channel hold, the major/long term bullish outlook since the bullish run from 1.1875 should remain intact. We have four consecutive bearish daily candles since August 30, so a minor bullish intraday pullback should not be a surprise. Immediate resistance is seen around 1.4230 area. A clear break back above that area could lead price to neutral zone in nearest term testing 1.4300/50 but unless price breaks and closed above 1.4350 I still prefer a bearish intraday outlook at this phase.

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

.