The forex market on the daily chart has been rallying from the November low. It sold off sharply for 2 days last week, but reversed back up to a new high. This is a reminder that a bull channel can quickly become a bear trend at any time. However, the selloff turned out to be a breakout test of the Sept. 1, and it became a bear trap.
It is important to note that trends constantly try to reverse, but most reversal attempts fail. Markets have inertia. That means they resist change and they tend to continue to do what they have been doing.
The next targets for the bulls are a measured move projection just above 1.24 and, more importantly, the February 2018 major lower high, just above 1.25.
Overnight EUR/USD Forex trading
The 5-minute chart of the EUR/USD Forex market formed a trading range early in the session, rallied to a new high, and then has been sideways again for several hours. This is a Bull Trending Trading Range Day. While it is a bull trend, it is a weak bull trend because most of the trading is within trading ranges. Day traders are willing to sell for scalps, but because it is a bull trend, it is still easier to make money as a bull. There is a 25% chance that there will be a reversal down. More likely, it will stay sideways or go a little higher.
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