Attached is the 1H chart for EURUSD. Yesterday was a day of a huge fall which shows that there is huge resistance around 1.41-1.42 and i really cannot see how this pair can break that resistance. There have been several attempts to break that resistance but all those attempts have been futile.
To the credit of this pair, it has also not fallen below 1.37 and this pair has been ranging within these 300-400 pips for about 3 weeks now. There does not seem to be any breakout in this pair. Everytime a breakout has been threatened, it has only fallen back into the range.
Yesterday we saw the huge fall and we saw the price being taken to strong support around 1.3920 as can be seen from the chart. We have also seen the price bounce from there for about 50 pips now and it has now been capped by resistance at 1.3980.
Today, there is very little, if any, news around and it is also a holiday in the US which would mean low volume. This could either mean slow movements in price or high volatility as low volume enables easy manipulation. We need to have our fingers crossed.
With this scenario, i expect a day of more ranging with 1.3920 providing good support. I do not expect this price to be broken today. On the upside, i expect resistance at 1.3980, 1.40 and then around 1.4050. I would be quite surprised if either 1.3920 or 1.4050 is broken today considering the circumstances.
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