- The EUR/USD has been in a bull channel for over two months. The channel up is tight, which will limit the first reversal down.
- The market has been away from the moving average for some time. This will increase the odds of a pullback to the moving average soon.
- While the channel up may continue, the market will likely transition into a trading range soon and not continue much higher.
- The weekly chart has been in a tight bear channel since mid-2021, and the rally from October 2022 was the first trendline break of the bear channel.
- Bulls will likely need a higher low major trend reversal on the weekly chart, which means the market will probably need to pull back to around the 1.05 price level before bulls view it as a credible higher low major trend reversal.
- Overall, this means that the daily chart will likely be sideways for several months.
EUR/USD Likely to Test Moving Average Soon
