EUR/USD Daily Forecast

Thursday, August 12, 2010

The EURUSD had a huge bearish movement yesterday, bottomed at 1.2859 and closed at 1.2862. On daily chart below we can see that after failed to move above 1.3340 resistance area, the Euro has been under heavy pressure and now price seems ready to test the lower line of the bullish channel, which is located around 1.2700 area, especially if price able to move consistently below 1.2800. Break below 1.2700 and violation to the bullish channel could be seen as bullish failure and potential bearish reversal scenario at least testing 1.2470. Immediate resistance at 1.2920 followed by 1.2980 - 1.3000 area. Break above that area should keep the bullish scenario intact.