Resis
- The EUR/USD had done a good job holding below the moving average for 12 bars which is a sign of strength by the bears.
- The selloff has had a lot of overlap during those 12 bars. However, the channel down is tight, which lowers the probability of bulls buying.
- The market is in the buy zone of the January 5th and 6th high, where bears began to get trapped selling during the rally up to the February high.
- The market is likely in a trading range and will bounce soon. This means traders should expect the bear selloff from the February high to be a possible bear leg in a trading range.
- Even if the market reaches the January 6th low before getting a bounce, the odds will still favor more sideways.
