EURUSD Forecast

The EURUSD continued its bearish momentum yesterday, bottomed at 1.4058 and closed at 1.4068. The bias remains bearish in nearest term testing the lower line of the major bullish channel and 1.4000 key support area. Price is in a critical phase now. As long as the bullish channel holds, the major bullish scenario since the bullish run from 1.1875 remains intact, but a clear break and daily close below the bullish channel could be an early signal of a new bearish phase at least testing 1.3800 region. Immediate resistance is seen around 1.4120. A clear break above that area could lead price to neutral zone in nearest term testing 1.4170 – 1.4220 but as long as price stays below 1.4280 – 1.4300 the bearish correction scenario since the fall from 1.4939 should remain intact and I still prefer a bearish intraday outlook.

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