The EUR/USD had a strong breakout last Thursday, breaking above the top of the bear channel. This increased the odds that the market will reach the January 14 high, which it did on Friday.
The market is always in long, and traders will expect a 2nd leg up following any pullback.
January 14 was a major lower high for the bears. Since the bulls were above to get above it, this increases the odds that that market is now in a bull trend or a trading range.
The bulls are hopeful this will be the start of the rally up to the October lows, the August 2021 lows, and ultimately the High of October 29.
Traders will probably expect profit-taking today or tomorrow. The bulls have five consecutive bars on the daily chart, which is climactic, so the market will likely need to pause.
The odds are there will be buyers below any pullback.
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