FOREX TRADING

Daily Technical Analysis

EURUSD Outlook

The EURUSD bullish scenario is still intact by a rejection to move below 1.4595 and bounce to the upside on Friday. I think we are in no trading zone now and the bearish correction/reversal warning is still there. A look at my h4 chart below we can see that after violated the bullish channel the price retreat to the upside toward the bullish channel’s lower line which is normal, but we still have potential bearish correction/reversal.

Still on my h4 chart below, with another look from another technical point of view, can you see that the price is potentially making a head and shoulders pattern? After bouncing to the upside on Friday, we might see another upside movement, even to the 1.4766 resistance area, but that will only make the H&S formation perfect and we have another downside reversal scenario. The 1.4595 area is also the neckline of the H&S, which potentially trigger further bearish momentum if price fall below that area targeting 1.4440 or even 1.4190. This bearish scenario warning by H&S can only be canceled if price break above 1.4850 area, targeting 1.5000. Be patient and don’t rush jump into the market.

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Just When? US Dollar Reversal and Breakout a Matter of Time

Fundamental Outlook for US Dollar: Neutral

- US Gross Domestic Product numbers show worst drop in 27 years
- Dollar slipped on S&P rallies through earlier-week trading
- Months of consolidation could foreshadow US Dollar breakdown

The US Dollar ended the week lower versus foreign counterparts, but it failed to break below key range-lows in spite of sharp S&P rallies and fairly disappointing domestic economic developments. The highly-anticipated US Gross Domestic Product showed that the economy contracted less than expected in the 2nd quarter of the year, but remarkable downward revisions to earlier figures clearly dampened optimism on growth. Government data showed that the economy saw its worst quarter-on-quarter performance in 27 years in Q1. The slower (more…)