- The EUR/USD came within 20 pips of the measured move target (purple line) based on the Nov. 10 and 11 measured move target.
- The market will probably have to get closer to the measured move target above regardless of if there is a pullback first.
- If today is a bear bar closing on its low, bulls may exit below the bar due to the risk of a wedge top (Purple line) just under the measured move target.
- Overall, the channel-up that began on Nov. 21 is probably a bull leg in what will become a trading range. Traders will expect a selloff soon and test the Nov. 21 low. This corresponds to the higher time frame charts as well.
- The rally that began in October is the first breakout of a tight bear channel, which means the bulls will likely need a pullback and the formation of a higher low major trend reversal.
EUR/USD: Vacuum Up to Measured Move target
