Friday was a bear reversal bar for EUR/USD, and a failed breakout above the July 6 lower high. It created a sell signal bar for a double top with the July 6 high. After consecutive wedge bottoms on July 21, odds favor a second leg sideways to up. Therefore, the bulls should buy a 1- to 3-day selloff. This should create a higher low and lead to a second leg sideways to up.
Even though EUR/USD has been trading sideways in a tight range for a month, the trading range price action began with the June 25 lower high. Therefore, it should reach that high before breaking far below the July 21 low.
EUR/USD First leg up from wedge bottom
EUR/USD Forex Daily Chart: First Leg Up From Wedge Bottom
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.