EUR/USD: Strong Bull Trend | Investing.com

  


The Forex market on the daily chart has been in a strong bull trend and there is room to a measured move target above. Also, the February 2018 high above 1.25 is another magnet.

EUR/USD Daily

However, the Small Pullback Bull Trend from the Nov. 4 low has lasted about 50 bars, which is a long time. Traders are wondering if there will be a deeper pullback before the rally continues up to 1.25.

There was a wedge top last week and then a big 2-day selloff to the start of the wedge. The EUR/USD is now testing the top of the wedge. The bears want a 2nd reversal down from a small double top. However, the bulls hope that the 2-day selloff was just a test of support, and that the bull trend is resuming.

With the EUR/USD in a trading range between 1.20 and 1.23, it is in Breakout Mode. Traders believe there is a 50% chance of a successful bull or bear breakout.

Once there is a successful breakout, they will look for a 300-pip measured move. For the bulls, that would be far above their 1.25 target. For the bears, a 300-pip selloff would be a test of the bottom of the August/October trading range.

I have been saying that Forex markets often make big moves in early January. That may happen here. But until there is a breakout, traders will bet on reversals. They are buying low, selling high, and taking profits every few days.

Overnight EUR/USD Forex trading

The 5-minute chart of the EUR/USD Forex market rallied a little early in the overnight session, but has been in a 30-pip trading range since then. Day traders are scalping. Today so far is a small inside day, which is neutral. I have been saying that financial markets might be waiting for the results of the Georgia senate races. Those results might not come until the end of the week.

While a breakout can come at any time, markets have inertia. They tend to continue to do what they have been doing. Day traders will continue to scalp until there is a breakout.

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