EURUSD Forecast -October 29 -2009
As I had expected, the EURUSD continued it’s bearish momentum yesterday, bottomed at 1.4690 and closed at 1.4715. As you can see in my daily chart below, we area in critical technical phase where price is now testing the major trendline support. This trendline support could be a strong support area since overall in longer term the bullish outlook remains intact, but once violated to the downside, we should have further bearish scenario. So I think what is going to happen on that trendline support today and the rest of this week should be our technical focus at this phase.
On h4 chart below, after violated the bullish channel the bearish momentum seems strong with technical target back towards 1.4500 area. The bias remains bearish in nearest term targeting 1.4580 area but once again, pay attention to the major trendline support on daily chart above. Immediate resistance is seen at 1.4760. Break above that area should trigger further bullish pressure testing 1.4850 area and might be considered as potential end to the current bearish correction.