- The EUR/USD is getting an upside breakout and will likely test the midpoint of the triangle (blue lines).
- The recent triangle was a likely final flag in a trading range. This means that the odds favor a test of the midpoint of this price level.
- The bulls recently formed a parabolic wedge bottom, enough for the bears to step aside.
- The rally is strong enough that the first reversal will likely fail and lead to a second leg up.
- At the moment, the bulls are getting a strong follow-through bar today. Traders will pay close attention to how strong today’s bar will be.
- Assuming today closes above its midpoint; the market is probably Always In Long. This means it is reasonable for bears to exit shorts and step aside.
- Overall, the odds favor a second leg up. Traders will pay close attention to see how determined the bulls are to close today’s bar on its high. The stronger today’s bar is, the more traders will be willing to buy today’s close for higher prices.
EUR/USD: Test of Final Flag Likely
