The EURUSD pair is entering crucial territory now. It has been showing some very good strength over the last week and it now threatens a breakout from its long time range of 1.38 to 1.42. Attached is the 4H chart for EU where the strength of this pair over the last few bars is obvious for everyone to see.
This pair has refused to fall down over the last few days and has since been moving higher and higher. For now, you can see that the last bar has broken a major resistance at 1.4160. But , in my charts, the last 4H bar is just 30 mins old and so i would not take this as a true break atleast for the next hour or so.
If the price does stay above 1.4160, then this is a confirmed break but still this pair is up against some huge resistance at 1.42 and then around 1.4250 where a previous high exists. This is why this pair is at a crucial territory. Entering longs at this price may not be a great idea. We need to either wait for a retrace or wait for the price to break 1.4250 in a clean manner to go long.
On the downside, the support exists at 1.4160, 1.41 and then 1.4040. On the upside, there is strong resistance at 1.42 and 1.4250. A break of 1.4250 should open up 1.45.
For today, i dont have any specific bias. I will be looking to buy dips but i would be looking for small profits on my longs unless and until 1.4250 is cleanly broken. In other words, the bias is still to the upside but we need 1.4250 to be taken out for us to enter longs with confidence...
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