The EUR/USD has gone sideways for four days following the strong consecutive two-bar breakout (July 12th and 13th) that closed far above the May high. This breakout is a strong enough surprise that it will likely get a second leg up.
The bears are hopeful that the recent strong breakout (July 13th) is the exhaustion that will lead to a second leg trap. While this is possible, it is more likely that the Bulls will get a second leg up.
If the bears will take control, they will need to show more signs of strength. At a minimum, the bears must get consecutive bear bars closing on their lows to convince traders that the bears are gaining control.
Overall, traders should expect the market to continue to go sideways to up, and the bulls will get a second leg up of the recent strong bull breakout.
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