- EUR/USD: It's probable that the high buy signal bar from July 6th will be tested within the upcoming days.
- The July 6th buy signal bar led to a strong rally and trapped bears above its high. Since the market is likely in a trading range, the odds are that the breakout point (gap) above the July 6th high will close, allowing bears to make money.
- The bears are hopeful that the tight trading range over the past few weeks will lead to a double top and measuring move below the July 6th low.
- The rally up to the July high was strong, and there is a 60% chance that those bulls will be able to scale in lower and exit at their original entry. This means that bulls will look to buy above a strong buy signal bar expecting a test of the July high.
- Overall, the market is in a tight trading range within a larger trading range. If one side had a high probability, the market would not go sideways. This means traders should expect both the bulls and bears to be disappointed.
EUR/USD: July 6 Buy Signal Bar High Test Likely
