- The EUR/USD is trying to get an upside breakout and a close above the moving average after forming a higher low with the August 3rd low.
- The bulls want today to close with a strong buy signal bar, increasing the odds of higher prices and a test higher.
- The bears want to damage today’s breakout and, at a minimum, create a tail above.
- The selloff was likely a leg in a trading range, which increases the odds of sideways trading and a rally lasting a few legs.
- The bears know that the odds favor a trading range and do not mind if the market goes sideways as long as they can form a major trend reversal.
- This means that the bears may step aside for a few legs and look to sell a 50% pullback of the August selloff as long as the rally is not too strong.
- Overall, traders will expect the bears to step aside for a couple of legs, which means that sideways trading is likely over the next few weeks.
EUR/USD Attempts Upside Breakout
