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EURUSD Forecast:
The EURUSD continued its bullish correction earlier today in Asian session. On h4 chart below we can see that price break above the trendline resistance indicating potential further upside correction testing 1.2230 before targeting 1.2325/50 even 1.2450 this week but the major scenario remains bearish. The tricky thing is that we have a gap between Friday's close price (1.2093) and today's open price (1.2118). Gaps are oftenly filled so a downside movement back towards 1.2093 should not be a surprise too, but as long as price still move in the bullish channel (blue channel), we are still in upside correction phase. Only a movement below that bullish channel and below 1.2000 could potentially end the upside correction ...

EURUSD Weekly Summary: Bullish Channel Vs Trendline Resistance

The EURUSD bearish momentum is paused this week. Price corrected higher, topped at 1.2151 on Friday after hit 1.1876 on Monday. From long term perspective, this upside pullback is nothing but a normal correction since significant bearish movement from 1.5140 in December 2009. On h4 chart below we can see that price is moving inside a bullish channel indicating upside correction phase but found good resistance around the trendline resistance so far. For the upcoming week, the bullish channel and the trendline resistance will be my technical focus. If price able to move consistently above the trendline resistance, further upside correction at least testing 1.2325/50 ...

EURUSD Forecast:
The EURUSD continued its bullish correction yesterday. On h1 chart below we can see that price is ready to test the minor trendline resistance indicating critical technical point at this phase. A break above the trendline and consistent move above 1.2150 resistance area could trigger further recovery testing 1.2325 region. On the bearish side, we have a rising wedge formation indicating potential bearish view especially if the formation violated to the downside testing 1.2000 and the lower line of the bullish channel. Note that we still need a violation to the bullish channel to end this upside correction phase.




GBPUSD Forecast:
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Biggest % gainers: This is where the momentum is this morning! NZD/JPY up 2.79%, NZD/USD up 2.74%, AUD/JPY up 2.34%, AUD/USD up 2.30%, CAD/JPY on commodity dollar strength after New Zealand raised interest rates last night by a 1/4 point. JPY and USD are diving

Biggest % losers: EUR/NZD down 1.60%, GBP/AUD down 1.54%, EUR/AUD, USD/CAD on commodity dollar strength.

AUD employment improved overnight & NZD raised interest rates to 2.75% as expected.

Meanwhile the BOE & ECB both held interest rates unchanged as expected.

EUR ECB Press Conference (Trichet speaking) at 8:30am EST today.

CAD Trade Balance worse at 0.2B vs. 0.7B expected. Last time was revised lower ...