Attached is the 1H chart for EURUSD. As expected, yesterday was a ranging day and there were no breakouts as such. Just before the London session start time (it did not start as it was a holiday, its just the time that i am talking abt here), there was a push up on the prices of all pairs just to trap some more longs into the false move. Lot of traders were caught off guard and the traders who were short with close SLs were hit.
It was obvious that it was a false move as such strength with such low volume is something that cannot be sustained for long. So, finally, the pair did start falling down but it was caught in a tight range between 1.4050 and 1.3960. The tight range continues even today though there seems to be break to the downside as i write.
For today, i would expect a break to the downside with 1.3960 serving as support and then followed by 1.3900. If these get broken , we should be going to 1.3860 and the PA there should tell us whether we can expect any more downside.
On the upside, we have resistances at 1.4010 and then at 1.4050 which i dont expect to be broken.
For today, expect a push up on all pairs close to the London session and then a big fall down.
good good good
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