EURUSD Forecast:
The EURUSD bullish momentum was paused on Friday. This may caused by a profit-taking activity on the weekend but some people, including me, start to worry about potential downside correction or even a bearish reversal. Like I said in my weekly summary on Saturday, beside the pair can not really move above 1.5000 area consistently, we also have a CCI bearish divergence on daily chart which potentially trigger bearish momentum.
However, technically the bullish scenario is still intact. As long as the bullish channel on my h4 chart below still valid, the bullish scenario should remains strong. We seem to have a downside pressure as price now testing the lower line of the bullish channel which has been a good support so far. Although not automatically set up a bearish reversal scenario since false breakout/down do happen, a violation to the downside of the bullish channel could be a serious threat to my bullish outlook testing 1.4920 even key support level 1.4850 area. Immediate resistance at 1.5050. Break above that area should trigger further bullish continuation targeting 1.5140 and 1.5300 area.
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