Daily Outlook for EURUSD

Attached is the 4H chart for EURUSD. Yesterday, this pair had a lot of ranging and the range was very tight as well making it very difficult to trade. But a curious thing happened at the start of the US session. There was a very quick dip and then the price came right back up within the hour.

Knowing that the overall trend was up, this was a very clear indication that this pair was going up. The big boys pushed the price down to make small panicky traders to sell off whatever they had in this pair so that they could buy it and get ready for the move up. The fact that the price came right back up within the hour showed that this pair had a lot of strength left in it.

For today, this pair has already broken through its major resistance at 1.4090 which was capping it the whole of yesterday. So, i would expect this pair to move up further atleast until the next major resistance at 1.4130.

For today, i would expect this to be a ranging day with bias to the upside. As it has been for the past 2 mnths, buy dips and you should not fail in this pair. On the upside, the resistances are at 1.4130, 1.4160 and then at 1.42. On the downside, the supports are at 1.3990 and then 1.3950 and i dont expect this pair to fall much below this.

Daily Outlook for EURUSD

Attached is the 4H chart for EURUSD. Yesterday, this pair had a huge fall which shows that the ranging which we saw in the high 1.42s was distribution rather than anything else. As can be seen from the chart, this pair moved down a lot and has moved down through several strong supports and has now bounced off support at around 1.40.

Now this presents a very tricky situation for us as it has become difficult to predict the direction. The normal assumption would be that this pair would continue in the range in which it has been for the past 2-3 months and so will continue to range between 1.38 and 1.43, which is what i believe is going to happen.

For today, i would expect a retrace for the big fall down and so i would expect this pair to move to around 1.41 or slightly higher and then have a small move down again. In other words, i would expect this pair to range again.

For today, on the downside, there is support at 1.40 and if this support is broken, then we can see the pair move down to 1.3950 and then 1.39 where a very strong support exists. On the upside, there is resistance at 1.4060 and then a strong one at 1.4120. I would expect more ranging today.

Daily Outlook for EURUSD

Attached is the 4H chart for EURUSD. Yesterday, i had mentioned that a lot of pairs were moving in unison and looking to break out of long term resistances and supports. 3-4 hours after writing that article, a curious thing happened. Many pairs did manage a small break through but after a couple of hours they fell back into the range. This can be clearly seen in the attached chart where there is a break through resistance but the close of the bar was again within the range.

The same curious thing happened with USDCAD as well. This was enough sign that the break through was false and also enough sign that it was a good time to short, which we did and we got 122 pips out of the EU short.

Now, again, we are back into the range and this fall down has been a nice retrace. Since the fall yesterday, there has been a nice bounce from the support area at around 1.4140 and now we are in the middle with this pair thinking what to do next. I believe that this range would continue today and what i have been saying for the past week or so continues today as well, buy dips. This retracement has provided a nice opportunity to buy this pair.

For today, on the downside, there is strong support at around 1.4150. Any hard break of this price would lead to 1.41 and then 1.4060. On the upside, there are resistances at 1.42 and then at 1.4250 and then 1.4290. Play this range with bias to the upside. Any break of 1.43 should be a sure sign to go long or add to longs. Any break of 1.4060 would be a sign to short.

Daily Outlook for EURUSD

Attached is the 4H chart for EURUSD. This pair now seems to have got very interesting. The bounces have become higher and higher. This is a very important point to note. Previously, when there were llots of ranging, this pair was bouncing between 1.38 and 1.40. Then , after a few weeks, the bounces happened between 1.4 and 1.42. But lately, we can see that this pair has not gone below 1.4160.

All this shows that this pair is having higher bounces and getting ready to break upwards. We can also see that USDCAD and USDCHF are about to break through long pending supports and we can also see that GU also has started approaching the top of its range. Pairs usually move in unison and by the looks of it, all the pairs now seem to be setting up to move through their very strong supports and resistances.

I have been advising to buy dips on this pair and the same advice holds good today as well. If we do see a break of the resistance at around 1.43, wait to confirm the break and go long. Any approach to 1.42 would also be a good opportunity to go long.

The supports for today exist at 1.4221, 1.4160 and then at 1.41. The resistances for today exist at 1.4280, 1.4330 and then at 1.4360. I guess we are setting up for a move to 1.45 and then to 1.46.

Daily Outlook for EURUSD

Attached is the 4H chart of EURUSD. This pair continues to have the same old story of ranging, ranging and more ranging, the only difference being that now, for the past week or so, the ranging has been at higher prices and also the range has started to become smaller and smaller.

This pair has simply refused to fall much below 1.4150 which shows that there is a lot of underlying strength. It is fascinating to watch this pair range so much though i do understand that this could be a nightmare for swing traders.

Unless 1.4150 is cleanly broken and the price continues to stay below that for a couple of hours atleast, i will continue to be bullish on this pair and will continue to buy dips. Any price movement towards 1.4150 should be an ideal opportunity to buy and any move below 1.4150 should be the trigger for us to reverse and go short.

For today, i expect some more ranging with 1.4150 serving as very good and strong support and resistances at 1.4250 and 1.43. It would be interesting to see if this range is broken this week.