– The bulls gapped below Friday’s low, triggering a low 1 signal on the daily chart. Currently, the market is reversing up, and bulls want the market to go outside up and close above Friday.
– Last week broke below the January close; however, the market failed to close below it. And on Friday, the market reversed up strongly.
– While the bears are hopeful that they will get a 400-pip measured move down based on the height of the TR soon, the odds favor any breakout attempts to the downside failing.
– Since we are in a three-month trading range, the odds are that the market will continue sideways.
– EUR/USD is in a trading range on the higher time frames and has had a selloff for over seven months. This means that the bulls should get a rally for at least a few months.
– The odds still slightly favor a measured move up of the three-month trading range and a test of the October 2021 highs.
– The bulls need signs of strength similar to what they achieved on the first week of February on the daily chart.
– If the bulls can get strong consecutive bull bars closing on their highs, traders will begin to believe that the upside breakout will happen soon.
