The EUR/USD is forming a tight trading range above the July 6th high. The July 6th high is a magnet, and the market will probably reach its high over the next few days.
The daily chart is in a trading range, meaning traders will expect gaps to close and limit order traders to make money. This means traders will bet on gaps closing, such as the July 6th buy signal bar high.
The bulls want the market to form a high lower with the July 6th low and rally to the July high.
The market will probably reach the July high and allow the scale in bulls to exit around the high close. However, the market may form a lower high first and get a second leg down before reaching the July high.
Since the July high is probably a 2nd leg trap, the market may have to fall below the July 6th low before testing back up to the July high.
Overall, the market is in a tight trading range within a larger trading range on the daily chart. This means that traders should expect sideways trading for the next several weeks.
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