EUR/USD Forex Daily: Increased Chance Of More Sideways


has been in a consecutive wedge bottom since June 18. That increases the odds of a break above the month-long bear trend line and then a rally up to the July 9 lower high. The rally could reach the June 25 high over the next few weeks.

Today triggered a buy signal, but so far, it’s a small bear day; a trading range day on the 5-minute chart.

A buy signal in a tight bear channel is a low probability. Many bulls will wait to buy until they see either a couple of big bull bars or a breakout above the EMA. Until then, odds favor at least slightly lower prices.

Since EUR/USD has been trading sideways for 4 days, there’s an increased chance of more sideways, possibly until Wednesday’s . If today closes near its low, it will be a Low 1 sell signal bar for tomorrow. But after 4 sideways days and consecutive wedges, it would be a weak signal, just like yesterday was a weak buy signal. That means sideways is more likely than up or down.

The bears want the month-long tight bear channel to continue to below the March low, which is also a measured move target. Because of the wedge bottom, they would like a collapse below the bottom of the bear channel to below that March 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