- EUR/USD is stalling just above the moving average and will likely be unable to escape reaching it in the next couple of days.
- Today’s high came within ten pips of the Dec. 13 close and sold off. This is a sign of disappointed bulls selling out of longs at the Dec. 13 close.
- If the bulls thought the market would go a lot higher in the next couple of days, they would not sell during the retest of the Dec. 13 high close.
- The bears will see today as a failed breakout of the 7-day tight trading range. They want to trap the bulls and get a downside breakout that will test the moving average and the Dec. 12 low.
- Overall, traders should expect a second leg down to the moving average over the next few days.
EUR/USD Stalls Above Moving Average
