- The EUR/USD bears broke above the measured move target (purple line) from the Nov. 10 and 11 bull breakout. However, the market found sellers and yesterday closed as a bear bar.
- The bulls have had a tight bull channel since Nov. 21. However, it forms consecutive buy climaxes and increases the risk of a selloff down to the moving average and the forming of a trading range.
- At a minimum, the market will probably test the Dec. 13 low, which is the bottom of the most recent buy climax and arguably the third push-up in a wedge top.
- Overall, traders should expect sideways to down over the next couple of weeks, and the market will form a trading range with the channel that began on Nov. 21.
EUR/USD: Wedge Top, Test of Dec. 13 Low Likely
