Attached is the 1H and 4H chart of EURUSD. As can be seen, not only EU several other pairs seem to have been caught in a range over the past 5-6 hours and they do not seem to know wheere they want to go. As for EU, it is caught in a range between 1.3367 and 1.4430.
The good thing is that EU is showing a lot of strength as we had expected yesterday. Also, the daily chart shows that it ended yesterday towards its highs and also above some of the previous highs, all of which points to the fact that there is strength for some more upside.
On the upside, the first resistance that needs to be broken is 1.4430 and i believe that it will prove to be quite tough. After that, the next resistance is at 1.4470 though it would be a small one. Beyond that is a very strong resistance at 1.3550 where some previous highs exist as well and hence should prove to be quite strong.
On the downside, there should be some good support at 1.3367 and then at 1.3330 and finally good support at 1.3300.
I would favor longs today but i would be careful with them. I might just take some small longs and keep taking small profits as and when they come. Play the range.
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