FOREX TRADING

Daily Technical Analysis

EURUSD Outlook

The EURUSD attempted to push lower yesterday. Price slipped below the minor bullish channel, bottomed at 1.3537 but closed higher at 1.3600 and now back inside the minor bullish channel. This fact should keep the bullish correction intact and potential false breakdown scenario which could trigger upside momentum testing 1.3735/50 area. The bias remains neutral in both nearest and medium term as price still consolidation but the major trend should remain bearish as long as price move inside the major bearish channel. Note that only a clear break below the triple bottom formation at 1.3450/35 area could be seen as the end of the bullish correction scenario. Immediate support at 1.3530 area.

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Daily Technical Analysis

EURUSD Outlook

The EURUSD attempted to push higher yesterday, topped at 1.3703 but closed lower at 1.3632. The bias is neutral both in nearest and medium term as price still consolidating. The bullish correction scenario after rejection from 1.3450/30 (triple bottom) remains intact as price still move inside the minor bullish channel with 1.3750 – 1.3850 as corrective target but still in a major bearish scenario. Immediate support at 1.3580 area. Break below that area could trigger further bearish momentum re-testing 1.3450/35 area but only clear break below 1.3450/35 area can be seen as bearish continuation confirmation targeting 1.3100 area.

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Daily Technical Analysis

EURUSD Outlook

The EURUSD failed to continued its bullish correction yesterday, bottomed at 1.3552 and closed at 1.3580. While technically this fact can be seen as potential false breakout scenario thus trigger significant bearish pressure re-testing 1.3450/30 key support area, the Euro was fell after a big surprise in US pending home sales data which fell to -7.6% indicating that risk aversion has taken center stage again. If this is true, a bad result of NFP today could trigger further weakness for the Euro while a good result could give some support. The bias is bearish in nearest term but as long as price still able to move above 1.3450 area, we are actually still in consolidation phase and need a clear break below 1.3450/35 area to continue further bearish scenario targeting 1.3100 area. Immediate resistance at 1.3625. Break above that area should lead us into no trading zone as direction would become unclear.

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Daily Technical Analysis

EURUSD Outlook

The EURUSD was corrected higher yesterday, topped at 1.3735 and closed at 1.3695. This fact should trigger further upside correction testing 1.3850 area. However note that the major bearish scenario remains intact as long as price still move inside the major bearish channel. While technical view suggests the pair is in bullish correction phase even a potential reversal, on fundamental side the Euro zone still have serious problem in Greek and Spain and so far we don’t have a clear clue about how the EU will solve the problem. Immediate support at 1.3690 – 1.3625 area. Break below that area should trigger further bearish momentum re-testing 1.3450.

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Daily Technical Analysis

EURUSD Outlook

The EURUSD attempted to push lower after a false breakout above the minor bearish channel, bottomed at 1.3461 but closed higher at 1.3558. The bias is neutral in nearest term but I still prefer a bearish scenario. We seem to have a good support around 1.3450 area at this phase and need a clear break below that area to continue the bearish scenario targeting 1.3100 this week. A failure to break below that support area and break above 1.3690 area should trigger further bullish correction targeting 1.3750 – 1.3850 area as the bearish momentum may have exhausted. Immediate resistance at 1.3600. Break above that area could trigger further upside pressure re-testing 1.3690 area.

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Daily Technical Analysis

EURUSD Outlook

As you can see on h4 chart below, the EURUSD attempted to push higher on Friday after failed to break below 1.3450 area (potential nearest term bottom), slipped above the minor bearish channel indicating potential upside correction especially if price able to break above 1.3690 targeting 1.3750 – 1.3850 resistance area . However the main trend should remain bearish and I still prefer a bearish scenario with sell on rallies strategy. The bias is neutral in nearest term. While the fundamental outlook for the Euro zone remains negative and should keep Euro under pressure in longer term, price has been indecisive in the last three weeks now and technically in oversold area so I won’t be surprise if we will see some upside correction at this phase. Immediate support at 1.3585. Break below that area an movement back inside the minor bearish channel could be seen as potential false breakout scenario which could trigger significant bearish pressure re-testing 1.3450 area.

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Daily Technical Analysis

EURUSD Outlook

The EURUSD attempted to push lower yesterday, bottomed at 1.3451 but closed higher at 1.3549. On h1 chart below we can see that price has slipped above the minor trendline resistance (yellow) indicating potential upside correction testing the upper line of the minor bullish channel. The main scenario should remain bearish but the fact that price already in oversold area may produce some minor upside correction. Immediate resistance at 1.3625 area. Break above that area and violation to the minor bullish channel could trigger further upside momentum but note that overall the pair is still in a bearish mode. After Greek debt and financial problem, traders now concern about the potential economic problem in Spain which could continue to pressure the Euro in longer term. Initial support at 1.3500 area. Break below that area could trigger further bearish momentum testing 1.3400 region.

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Daily Technical Analysis

EURUSD Outlook

The EURUSD attempted to push higher yesterday, topped at 1.3625 as a temporary reaction after The Fed decided to keep the interest rate low but further bullish momentum was rejected as price closed lower at 1.3539. This fact should keep the bearish scenario intact. On h4 chart below we can see price is now testing the minor trendline support (yellow). Break below that trendline should trigger further bearish momentum testing 1.3444 – 1.3400 area. Immediate resistance at 1.3580 area. Break above that area could trigger further bullish correction but overall I still prefer a bearish scenario with sell on rallies strategy.

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