FOREX TRADING

EURUSD Outlook

The EURUSD continued its bearish momentum yesterday. On h4 chart below we can see that price not only break below the trendline support but also slipped below the major bullish channel indicating a serious threat to the bullish correction scenario and technically price is now ready to resume its major bearish scenario especially if able to break below 1.2150/40 region targeting 1.2000 area. The bias is bearish in nearest term but CCI in oversold area and heading up on h4 chart indicating potential upside rebound. Another upside pullback inside the bullish channel could lead us into neutral zone in nearest term and keep the bullish correction scenario intact. Immediate resistance at 1.2250 followed by 1.2300 region.

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EURUSD

Support at 1.2150 came under pressure yesterday as the euro continued to pullback after breaking below 1.2250 which provided support last week. Short-term sentiment remains slightly bullish as the median retracement of 1.1875-1.2465 is still intact – around 1.2170. Not far below 1.2150 comes 1.2100 which is the next support to watch – formed by the 61.8% of mentioned up leg. More downside action is likely – as long as upside will be capped by 1.2300. Above 1.2300 – uptrend resumes. Current quote is 1.2220 @05:55 GMT

Support: 1.2150, 1.2100 and 1.2000
Resistance: 1.2250, 1.2300, 1.2360 and 1.2400
Market sentiment: long term – bearish, medium term – bearish, short term – slightly bullish, intra-day – bearish

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EUR/USD closed lower on Tuesday and below the 20-day moving average crossing tempering the near-term friendly outlook. The mid-range close sets the stage for a steady opening on Wednesday. Stochastics and the RSI are overbought and are turning neutral to bearish hinting that the market is vulnerable to additional weakness near-term. If it renews this month rally, the reaction high crossing is the next upside target.

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Daily Technical Analysis

EURUSD Outlook

As I had expected, the EURUSD had a bearish momentum after break below 1.4450, bottomed at 1.4338 and closed at 1.4379 on Friday. The bias is neutral in nearest term but I prefer a bearish scenario at this phase targeting 1.4250 area as bullish scenario failed. Immediate resistance at 1.4400 – 1.4450 area. Only break above 1.4450 area should be seen as bearish failure and lead us into no trading zone as direction would become unclear.

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Daily Technical Analysis

EURUSD Outlook

The EURUSD still trapped in range area of 1.4450 – 1.4600 yesterday. However, earlier today in Asian session price break from that range area, slipped below 1.4450 suggesting a potential bearish scenario towards 1.4250 as bullish scenario is now in serious threat. The bias is bearish in nearest term. Another movement above 1.4450 should lead us into no trading zone as direction would become unclear for me.

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