EURUSD Forecast

The EURUSD spiked higher yesterday on SNB intervention to weaken the Franc against the Euro, hit 1.4280 but the bullish momentum was short lived and whipsawed to the downside, bottomed at 1.3972 and touched the lower line of the major bullish channel (white) as you can see on my daily chart below. Price is still in a bearish correction phase since the fall from 1.4939, but the fact that the bullish channel still hold so far might limit the bearish pressure for now and my hourly chart bias is neutral with hourly CCI in neutral zone. Immediate resistance remains around 1.4120. A clear break above that area could trigger another bullish pullback testing 1.4200 – 1.4250/80 area but as long as price stays below 1.4280 – 1.4300 I still prefer a bearish intraday scenario at this phase. However, a clear break above 1.4300 could stop the bearish correction phase as the lower line of the bullish channel has been touched and further bullish run resuming the major bullish scenario can be expected. On the downside, a clear break and daily close below the bullish channel and 1.4000 – 1.3950 area could be a threat to the major bullish scenario since the bullish run from 1.1875 at least targeting 1.3800 region.

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