EUR/USD: Today Likely To Bear Day After 4-Day Rally


EURUSD Daily Chart

The daily Forex chart rallied for 4 days from a wedge bottom. A rally from a wedge bottom typically has a 2nd leg up. Therefore, the odds are that the bulls will buy a 3 – 5 day pullback. The 2nd leg up should test today’s high and the top of the 3-month bear channel.

The bears want another lower high and then a new low. However, after 4 bull days, they will probably need a micro double top or a double top. Consequently, the 1st reversal down will probably form a higher low.

The 4-month trading range continues to have strong legs up and down. Traders are simply waiting for news from Brexit. Until then, they will keep looking for 3 – 5 day legs and then reversals.

Overnight EUR/USD Forex trading

The EUR/USD 5-minute chart sold off 40 pips overnight from above yesterday’s high. Today will probably be a bear day after a 4-day rally. Therefore, traders will sell rallies today.

The overnight bars are small and have prominent tails. This indicates a lack of energy. Day traders are looking for 10 pip scalps.

There will continue to be occasional 30 pip breakouts on minor Brexit news. But, until there is a major announcement, day traders will look for reversals.

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.

Source link