Attached is the 1H chart for EURUSD. The week has begun a bit confusingly as a lot of people would have expected GU and EU and other pairs to continue their upside movement from last week. But today morning, we find that all the pairs have been dropping down, especially EU.
As can be seen from the chart, EU broke through important support at 1.3916 again and is now trading below it. We can also see that the break was quite good as it was done through a large bar (as usually happens with good breaks of SR) and the volume is also quite high for the Asian session.
It should be interesting for the rest of the day on how this break plays out. We have to see whether this break holds or whether it is going to range with a range of 100 pips as it has been doing for last few days or whether it is the typicaly Monday morning 'cheater' and we are going to shoot right back up.
As usual, 1.3920 would be crucial. A clean break of this should lead to more upside.
On the upside, the resistances are at 1.3920 and then at 1.4. On the downside, the supports are at 1.3885 and then at 1.3855 and then at 1.38. I would expect more ranging today and any approach to 1.3855, we can go long and any approach to 1.4, we can go short.
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