Daily Outlook for EURUSD

Attached is the 4H chart for EURUSD. As was expected, this pair has broken through some major resistances over the last couple of days and is now taking some rest. It has had some minor retracement yesterday and it is now taking some rest contemplating the next direction.

This pair has indeed broken through the same major resistances sometime back as well. The major difference between then and now is the fact that this break has been followed by a slowdown and a small retracement only whereas the previous breaks have been followed by immediate selling and immediately this pair has done down.

The fact that this pair has not immediately fallen down and is now resting close to its support shows that maybe, just maybe, this pair has enough strength now to break through the resistances in 1.42s. We will have to wait and see. We will know it this week.

On the upside, as usual, the resistances exist at 1.42 and 1.4260 and a clean break of 1.4260 will open up 1.45 to 1.46. On the downside, we have strong support at 1.4160 and then at 1.41. For today, i expect 1.4160 to hold up the price and i do not see price falling below that. You can go long on any approach to 1.4160. Any break of 1.4160 can be shorted but we should be looking for break of 1.4260 to add to our longs.