Attached is the 4H chart for EURUSD. As can be seen from the chart, yesterday, we again had a nice breakout and the high of the previous day was broken which was a good sign for the longs. The pair moved up to its next resistance at 1.4160 where a previous high exists.
The resistance proved tough for this pair and hence this pair has since retraced. Now it has come down to be close to its support at 1.4110. I would expect this pair to retrace a bit more and reach 1.4060 where a strong support exists. The fact that this pair has been making some decent progress and has been breaking some good resistances shows us that this pair still has lot of strength left in it.
For today, i would expect this pair to reach 1.4060 and i do not expect this price to be broken. If this price is indeed broken, then this pair should move down further on to 1.4010 and then 1.3950 and then on to 1.3910.
I would expect this pair to make another attempt at the high at 1.4160. The problem for this pair in moving higher is the row of strong resistances that it has on its own. It has resistances at 1.4160, 1.42 and then 1.4250 and 1.4290, all of which are very very strong resistances. This should be an interesting day.
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