The EURUSD had a significant bearish momentum last week, broke below the major bullish channel. The white line you see on my hourly chart below is the lower line of the bullish channel. Like I said in my weekly summary on Saturday, by violate the major bullish channel EUR/USD is in early phase of a major bearish reversal scenario, testing 50% Fibo retracement of 1.1875 – 1.4939 around 1.3400. The bias remains bearish in nearest term. We have a gap down earlier today in Asian session, so intraday movement can be a little bit tricky. Gaps are usually filled and any upside pullback now is normal, but sometimes, when the momentum is strong, gaps never get filled. Immediate resistance is seen around 1.3651 (Friday’s close price) followed by 1.3735.
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