- The EUR/USD formed a wedge bottom yesterday, which led to a sharp reversal during the early morning hours.
- Because of the wedge bottom and today’s strong reversal up, the odds favor at least a small second leg up.
- The bulls are hopeful that today will close on its high and lead to strong follow-through buying tomorrow, breaking above the 20-period Exponential Moving Average (EMA)
- Next, the bulls want a rally to the December high.
- Today’s rally is strong enough that most Always In Bears will exit above yesterday’s high or wait and exit above today’s high.
- Overall, today is a strong enough rally that it will probably get a second leg up. Traders will pay attention to see how determined the bulls are to get today to close on its high and to see if it will close above the EMA.
EUR/USD Daily: Wedge, Two Legs Up Likely
