- The EUR/USD is forming a tight trading range after exceeding the April 14th high.
- The bulls want an upside breakout and higher prices. The bears want a downside breakout. However, they need to get a strong breakout below the moving average.
- With the channel up from the March low being as tight as it is and the majority of the bars above the moving average, most traders should wait for the bears to begin to get consecutive closes completely below the moving average before looking to sell.
- The odds are the market will pull back soon, and the channel that began on March 24th will transition into a trading range. This means that the odds favor prior higher lows getting tested.
- Overall, the odds favor a pullback and test of the bottom of the channel. Low probability that the bulls get a strong upside breakout that starts the market cycle over, leading to a measured move up.
EUR/USD Forms a Tight Trading Range
