Two big bull days closing near their highs.
First reversal up from tight bear channel is typically minor, which means it is more likely to lead to trading range than to bull trend.
Reversal up from wedge bottom usually has at least 2 legs up, and often reaches last lower high.
Traders will buy first 2- to 3-day pullback, expecting second leg sideways to up.
Since this is probably a bull leg in what will be a trading range, and trading ranges disappoint traders, rally should stall today or tomorrow.
Overnight EUR/USD Forex trading on 5-minute chart
Reversed down from above yesterday’s high. Since third consecutive big bear day is unlikely, today will probably be a trading range day.
Day traders have been selling rallies and buying selloffs, and have been taking quick profits.
Trading range day will probably continue.
If there is a series of big trend bars up or down, day traders will switch to swing trading, but trading range day is more likely.
Open of day will be magnet at end of day. Bulls want third consecutive bull day, which would increase chance of higher prices tomorrow.
Bears want today to close on its low, which would increase the chance of a pullback tomorrow.
EUR/USD: Strong Reversal Likely
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.