- The EUR/USD sold off in the early morning hours and came close to reaching the moving average.
- While there will likely be buyers at the moving average, traders should be mindful that the market may be at the top of a developing trading range. This means that the pullback may not stop at the moving average.
- If the market does hesitate at the moving average, the hesitation may be brief and lead to lower prices.
- While the odds favor the further formation of a trading range and a test down to the year’s low, the bears need to develop more selling pressure.
- Bears have three consecutive bear bars, which is strong enough to increase the odds of hesitation, but they have not yet done enough to convince traders that the market will reverse down.
- As long as the bears are unable to break below the moving average, bulls will continue to buy at the moving average, betting on higher prices.
EUR/USD Testing Moving Average
