EUR/USD Daily Forecast

Wednesday, July 21, 2010

The EURUSD was volatile but showed unclear direction yesterday. On h1 chart below we can see price is forming a broadening formation where price makes new highs and lows without clear direction. The upside scenario remains intact but the appearance of the broadening formation activates my wait and see mode. Note that price also reject to move consistently above 1.3000 since Friday, which may indicate potential bullish exhaustion. Immediate resistance at 1.2920 area. Consistent move above that area could trigger further upside pressure towards 1.3000 region again before testing 1.3120. Initial support at 1.2750.