EUR/USD 4hr Chart Analysis
EUR/USD Last Week
The Bears took control of EUR/USD early last week pushing the price down to the 1.3000 psychological level. However, the Bears could not make a sustained break past the massive 1.3000 psychological level. After reaching 1.3000 two indecision candles formed and the Bulls took control of the market. After a strong push by the Bulls fizzled out price fell back into last weeks range between the 1.3040-1.3060 support area and the 1.3120-1.3140 resistance area.
On Friday morning EUR/USD finally manage to break its range. The Bulls pushed up to the 1.3190-1.3210 resistance area and ended the week stuck on top of it.
Going Long on EUR/USD
The area above 1.3190-1.3210 should not present much trouble for any strong Bullish move. However, in the past price has had a bit on an issue crossing through the 1.3230 line. While the 1.3230 probably wont present problems for any strong Bullish moves you should keep an eye on it anyway. If the Bulls are pushing up slowly and they are weak they might get held up by the 1.3230. Other than that the Bulls do not have any major resistance until the 1.3265-1.3285 resistance area.
If you are planning on going long early in the week keep a close eye on the 1.3230 and definitely watch out for the major resistance area at 1.3265-1.3285.
Going Short on EUR/USD
Opening a short trade early this week could be dangerous. Price closed just above the 1.3190-1.3210 resistance area so now it is acting as support. This means that there are a lot of buyers stacked directly below the current price so short trades might be dangerous. If price does move down watch out for minor support around 1.3165 followed by major support at 1.3120-1.3140.
Ranging on EUR/USD
As always ranges are possible and with the way price has been moving ranges are likely. If price pushes down at the start of the week I expect ranges between the Support at 1.3120-1.3140 and the Resistance at 1.3190-1.3210. If price pushes up at the start of the week I expect possible ranging between the Support at 1.3190-1.3210 and the Resistance at 1.3265-1.3285.
Support Could Still be Resistance
One final thing to consider about this week is how close price is to last weeks 1.3190-1.3210 resistance. Since price is above the 1.3190-1.3210 it has technically become support. However, Support and Resistance areas only work because a lot of traders are using them. It is possible that the 1.3190-1.3210 support could still be seen as resistance because price has barley broken it.
Summary
If you are going long at the start of the week there is not much in your way except for the minor 1.3230. Going short early in the week could be dangerous as the 1.3190-1.3210 will probably act as support. Given how EUR/USD has been moving recently more ranging can be expected.