- EUR/USD got a strong bull close on Friday after two legs down, falling below the moving average.
- At the moment, the bulls have a strong follow-through bar today. However, the day is not over. The bulls need to keep the bar closing on its high for the next several hours. This means traders need to be mindful of the bulls scalping out and the bears selling aggressively, which would cause a weak bull follow-through bar today.
- At a minimum, the bulls want the market to get a close above the midpoint of today’s bar, and the bears want the opposite.
- Even if the bulls get a strong bull close and a rally above Jan. 2, sellers are still likely not far above, and the market will go sideways at a new high.
- While the market may continue higher, more likely that the market is transitioning into a trading range, and it will get a deeper pullback closer to the Nov. 21 low. This is because the rally from the start of November is a bull breakout of a very tight channel on the longer-term charts.
- This means that the bulls will likely need a deep pullback and a higher low major trend reversal on something Like the weekly chart to sustain the rally.
EUR/USD: Bulls Seek Follow-Through after Friday's Close
