Attached is the 1H chart for EURUSD. There has been some strange moves in this pair over the past couple of days and i believe these moves can be attributed to the fact that we were nearing month end which was also the end of the half year. We are also nearing a long weekend for the USA and all these could have contributed to the extra volatility of this pair.
We have had a big move up and then we have had a fall down which has shown that the breakout was a false one. As i write, the price is resting at a strong support at 1.4016. I would expect this price support region to hold and we might see a move up again. Today and tomorrow is very crucial as we have some big news coming out of the US region over the next 2 days which could lead to additional volatility leading into the long weekend. It should be an interesting next 2 days.
On the downside, the supports are at 1.4016 and then at 1.3980. If these are broken, then we have a strong support at 1.3920. I guess we are getting pretty much used to these supports nowadays with all this ranging going on.
On the upside, the resistances are at 1.4060, 1.41 and then a huge resistance at 1.4160.
For today, i expect 1.4016 to be a good support and expect price to move up a bit till the news. Expect more ranging till the news and then the news will determine the next direction.
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