Attached is the 4H chart for EURUSD. Yesterday, this pair had a lot of ranging and the range was very tight as well making it very difficult to trade. But a curious thing happened at the start of the US session. There was a very quick dip and then the price came right back up within the hour.
Knowing that the overall trend was up, this was a very clear indication that this pair was going up. The big boys pushed the price down to make small panicky traders to sell off whatever they had in this pair so that they could buy it and get ready for the move up. The fact that the price came right back up within the hour showed that this pair had a lot of strength left in it.
For today, this pair has already broken through its major resistance at 1.4090 which was capping it the whole of yesterday. So, i would expect this pair to move up further atleast until the next major resistance at 1.4130.
For today, i would expect this to be a ranging day with bias to the upside. As it has been for the past 2 mnths, buy dips and you should not fail in this pair. On the upside, the resistances are at 1.4130, 1.4160 and then at 1.42. On the downside, the supports are at 1.3990 and then 1.3950 and i dont expect this pair to fall much below this.
No comments:
Post a Comment