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.
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.
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