The EURUSD bearish momentum was stopped yesterday. The pair failed to move consistently below 1.4250 and the Dollar was weaken significantly after new home sales number unexpectedly fell to 355K. Price topped at 1.4365 and closed at 1.4328. On h4 chart below, we can see that the bearish channel has been violated to the upside indicating potential threat to the bearish outlook. Remember that the bearish momentum in the last three weeks has been attempting to test the long term key support level at 38.2% Fibonacci retracement of 1.2456 – 1.5143 around 1.4127 area. Although it’s too early to say that the bearish momentum is over, the bearish channel violation should keep the long term bullish scenario remains intact convincingly. The bias is bullish in nearest term testing 1.4420 area. Immediate support at 1.4270 – 1.4250 area. Break below that area should keep the bearish scenario intact testing 1.4170 – 1.4127 area. Break above 1.4420 should be seen as bearish failure and trigger bullish scenario back towards 1.4620 area.
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