- The EUR/USD pair has been in a tight bear channel since the high of July.
- The bulls recently formed a parabolic wedge bottom (green line). However, the channel down is tight. Most parabolic wedges are minor reversals that lead to sideway trading rather than a pullback.
- The bears want a downside breakout below the July 28th low and reach July 6th, the bottom of the most recent buy climax up to the July high.
- The bears will probably be disappointed around the current price level, just like on July 28th.
- The bulls want a double bottom and a reversal up with July 28th; however, they need a strong reversal bar, or else traders will assume more sideways trading is likely.
EUR/USD: Bears Look to Test July 6 Low
