EUR/USD Builds Buying Pressure: What's Next?

EUR/USD Builds Buying Pressure: What's Next?

 
EUR/USD
+0.60%

  • The EUR/USD is developing buying pressure, following a tight bear channel down to the August low.
  • The market is testing near the July 6th buy signal bar high. This will probably act as support due to the signal bar (July 6th) leading to a strong rally.
  • The channel down to the August low is in a tight bear channel. This means the first reversal will probably fail and lead to a minor reversal.
  • The bulls need to show more signs of strength. First, they need to get consecutive bull closes. Ideally, the Bulls need to get a strong reversal bar closing above the past 2-3 bars.
  • Overall, traders should expect the market to go sideways over the next few days.


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