- The EURUSD formed a downside breakout yesterday and went below the July 6th buy signal bar high.
- Because the market was in a trading range, the odds favored the July 6th breakout point (gap) closing, allowing the bears to make money.
- The bears failed to close yesterday’s bar on its low. This is a sign that the market is still in a trading range and not a bear trend, which means there will probably be a rally lasting at least two legs soon. However, the rally will probably be in a trading range as well.
- The bulls want a strong reversal bar today to convince the bears to exit above a bull bar.
- The daily chart has formed decent bull bars over the past ten days, increasing the odds of more sideways trading soon.
EUR/USD: Bears Reach July 6 High - What's Next?
