Yesterday proved to a very interesting day for the Euro and other currencies as well. Attached is the 1H chart of EURUSD. You can see that the price kept bouncing up from the support at 1.3245. This is an ample indication that there was some strong buying there and a cue for us to go long. Then price finally broke through and went up to as much as 1.3340 which is a region of previous resistance.
Almost on cue, the price started dropping back and this was a good place for us to go short. The area of previous resistance and the fact that the price started dropping back was enough indication for us to go short. Price went down to region of previous support at 1.3245 and kept bouncing from support and this was again an indication to go long.
Anyway, now price is caught in the range between 1.3345 and 1.3245 and seems to keep moving up and down. There is a huge list of news today and i somehow feel that the euro will go down further today.
On the downside, the targets are 1.3245 which should serve as strong support followed by 1.3184 which is also a region of strong support and then 1.3123.
On the upside, there should be strong resistance at 1.3345 and then at 1.3370 but i doubt whether price will reach there.
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