The EUR/USD is in a small pullback bear trend. However, it will likely be a bear leg in a trading range.
The first target for the bears is the Jan. 6 low, which will likely get tested sometime this week.
The daily chart is likely forming a trading range which means the bears will likely get disappointed by the pullback soon.
It is common for legs in trading ranges to appear strong and like they will break out of the range just before the market reverses and the trading range continues.
The daily chart is also getting near the 1.050 price level, where the weekly chart traders will begin to buy, betting on a higher-lower major trend reversal.
It is important to remember that 1.050 is just the minimum price level, and the market can go much lower and still form a successful higher-low major trend reversal on the weekly chart.
Overall, traders should expect a bounce soon and for the bears to become disappointed.
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