EUR/USD: Consolidating In A Bull Market

  


The has been trading sideways for 6 days following last week’s buy climax. That buy climax was the longest stretch of consecutive bull-days coming late in rally. The bulls see it as an opportunity to take surprisingly big profits.

The profit taking usually temporarily ends the bull trend. Traders expect a couple legs sideways with a decline. So far, the correction is sideways.

It typically tests the bottom of the 2 day buy climax, which is the June 3 low of 1.1167. However, if there are a couple sideways legs, the bulls will look to buy again, hoping to break above the March high.

If today is a bull day, it would be a High 1 bull flag buy signal bar for Monday. The rally is in a Small Pullback Bull Trend. Many bulls will buy above today’s high.

Overnight trading

On the 5-minute chart, EUR/USD bounced off yesterday’s low. Today so far the action is sideways and day traders have been scalping.

Since the EUR/USD has been sideways for 6 days, today will probably be neutral. Traders will likely wait for next week to decide if the bull trend will immediately resume or if the pullback will test the buy climax low.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

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.



Read more here