EURUSD Forecast
The EURUSD had an extraordinary movement yesterday, moved almost 300 pips up after 300 pips down on Tuesday. I was anticipating upside correction, but the “correction” was much higher than I had expected. We don’t see this kind of movement everyday, but anything is possible in forex market. That’s why patient and money management are much more important than any technical or fundamental view. My ego was hurt but I made no trade yesterday since I saw no evidence that the correction was over to jump into the market with short position. On h4 chart below we can see that the bearish channel has been violated to the upside indicates bearish failure but doesn’t necessarily mean that we are back in bullish mode again. Not yet. The fact is that neither of bullish nor bearish is able to maintain their momentum this week suggests unclear direction. CCI also in neutral area in h1,h4 dan daily chart. Yesterday’s strong bullish momentum found resistance at 61.8% Fibo retracement of 1.4158 – 1.3700 around 1.3990 area. We need a clear break above that area to see further bullish momentum targeting 1.4000 before re-testing 1.4158. On the downside, immediate support at 1.3850. Break below that area could trigger further bearish pressure re-testing 1.3700 region. Judging by from the last couple of days extreme but unclear movement, we better think twice before make any trade today.