- The EUR/USD continues to go sideways after the tight bear channel down to August 3rd.
- The bears are hopeful that the channel down is tight enough to get a 2nd leg down and a test of the July 6th buy signal bar low.
- There are probably buyers below yesterday’s and August 3rd low. This increases the probability that the bears today will become disappointed before the end of the day.
- Since the channel down to the August 3rd low is tight, that will increase the odds of the recent bull breakout on August 4th being minor and leading to sideways trading.
- Traders should expect more sideways price action to develop. However, the bulls have not done enough to end the selling, so the market might have to reach the July 6th low.
- The bulls were strong at that price level, and the market may want to test it again to see if the bulls will buy.
EUR/USD Continues Trading Sideways
