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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