- The EUR/USD formed consecutive bull bars, closing above the moving average. The market is likely Always In Long and will probably get a second leg up.
- The market formed a final flag (blue line), which is a triangle, back in August. The market will probably test the midpoint of the triangle over the next couple of weeks.
- The bears hope that they will be able to trap the bulls at the moving average. They hope that today is a big bear bar closing near its low.
- The downside is probably limited after the two strong recent bull bars.
- While the market is Always In Long, the upside is probably limited. The bulls formed a strong bull breakout yesterday (August 30th). However, there is a tail above the bar. This signifies hesitation and traders selling into the bar’s close.
- Overall, traders should expect a 2nd leg up after the rally over the past two days. Traders will pay close attention to see what kind of follow-through the bulls get today.
EUR/USD: Bull Breakout, Second Leg Up in the Offing
