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EURUSD Forecast: The EURUSD had a significant bullish momentum yesterday, topped at 1.2854 and closed at 1.2807 after price break above the triangle. Positive data from China and Australia trigger risk appetite and hurt the Dollar. The “head and shoulders” bearish scenario remains intact but clearly under heavy pressure as price is now move above the neckline (1.2700). A new trend line resistance (yellow) is drawn as a result of yesterday’s price action. Break above that trend line and 1.2854 could trigger further upside pressure testing the right shoulder of the H&S formation around 1.2930 which could be a serious threat to the bearish outlook and potential bullish reversal scenario. On the downside, I think we need another move below 1.2700 to see further bearish pressure.

EURUSD Forecast: The EURUSD made a moderate recovery yesterday, topped at 1.2870 and closed at 1.2825. Further bearish pressure was rejected around the lower line of the bullish channel but I think it’s too early to say that the bullish scenario has back to it’s track. If we look at the daily chart, actually price still making lower highs and lows and we must have at least a new higher high to see further recovery. The minor trendline resistance (white) on h4 chart below could be an important technical focus at this phase. A consistent move above that trendline resistance could trigger further upside recovery towards 1.2930 area before testing 1.3000. On the downside, immediate support at 1.2780. Break below that area could trigger further bearish pressure testing 1.2700 and the lower line of the bullish channel.