- The EUR/USD daily chart is in a tight bull channel. While the market is forming a wedge top around the January 23rd high (see chart), the odds are that the wedge is minor and will lead to sideways trading at best for the bears.
- The channel up is very tight, which increases the odds that the first reversal down will be limited.
- On the weekly chart, the market is forming a strong trendline break of the bear channel that began in mid-2021. The bulls will likely need a higher low major trend reversal on the weekly chart.
- This means the daily chart will likely have to pull back to around the 1.044 price level over the next couple of months.
- Overall, traders should assume that the market will continue sideways on the daily chart and test the moving average (blue line) soon.
EUR/USD: Trading Range Likely, But no Sign of a Top Yet
