- The EUR/USD had a strong bull close yesterday. However, the bar was big, making it a buy climax and increasing sellers’ risk at the bar’s close.
- Also, it was a breakout above the high of January 2nd, which is a profit-taking zone for the bulls. Bears know this, and they will sell above the January 2nd high.
- Bears see the rally as a part of an expanding triangle top. They want the market to reverse back into the trading range and ultimately break below the January 6th low.
- Overall, the daily chart is likely in a trading range, which increases the odds of more sideways than up.
- While the market is in a sell zone, the bears may have to form a micro double top before getting a downside breakout.
- Overall, traders should expect sideways to down over the next several weeks.
EUR/USD: Expanding Triangle Top
