Attached is the 1H chart for EURUSD. So finally, the range which has been existing for so many days has been broken. The big sized down bar shows the break of support. The low volume of that bar is a bit of a concern though cos usually during break of supports or resistances, the bar is big and the volume is also high.
Now we can expect a retrace back to the support turned resistance at 1.3855. The PA here should tell us the future direction. If the support turned resistance holds during the retrace, then we are going further down. If not, then we are going back up.
On the downside, we have support at 1.3835. A break of that could lead to the price going straight down to 1.3720.
On the upside, we have resistance at the broken support of 1.3860. A break of that could again open up 1.39 and then 1.3950.
For today, i expect a move back up to 1.3860 and as said above the PA there should then determine the next course of action. I would like to favor the downside but the low volume during the break of support is the one which confuses me.
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