- The EUR/USD is forming a wedge top, and the bulls are trying to break above it and reach the measured move target above (1.0697). The market may have to reach the measured move target before the channel that began on November 21 converts into a trading range.
- While the bulls have a decent amount of buying pressure since the November 10 and 11 bull breakout, the bears have done enough to make traders question how long the channel that began November 21 will last.
- Bears are getting decent selling pressure. However, they likely need more selling pressure before many bears are willing to sell below bars for a swing.
- At the moment, the odds favor higher prices, even if the market has to pull back for a few legs first.
- If the bears can continue to develop more bear bars closing below their midpoints, the odds will increase that the market will return to the November 21 low.
- Overall, the market is in a tight bull channel. While the bears make money selling above bars, most will hesitate to sell below bars until the bears have developed more selling pressure. This means the odds favor more sideways over the upcoming days.
EUR/USD: Bulls Want to Break Above Wedge Top
