Attached is the 1H chart for EURUSD. This pair had a huge upmove yesterday along with its cousin, GBPUSD. It broke through an important psychological resistance at 1.40 and is now resting at a strong support at around 1.4050. As can be seen from the chart, this pair has been ranging for the past few hours. Whether this ranging is accumulation and hence a breakout to upside or distribution and hence a breakout to the downside, only time will tell.
On the downside, we have support at 1.4050 and then 1.4000. If both these supports are broken, then we have the next support close to 1.3920.
On the upside, there is some strong resistance at 1.41 and then at 1.4160 which is a even bigger resistance.
The trade plan for today would be to wait for break of 1.41 or 1.400 and then take a trade in that direction.
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