– The bulls triggered yesterday’s buy signal bar for the second entry and failed breakout below the July 14 low.
– Yesterday’s buy signal bar has a prominent tail above, which increases the odds of sellers above and sideways. However, it is a reasonable stop entry buy, meaning some bears will exit above yesterday’s bar.
– The bulls need a strong entry bar today, preferably closing the moving average and on its high. That would increase the odds of follow-through and higher prices.
– The bears want the market to stall just under the moving average and for the market to set up a second entry short (Low 2), which would trap the bulls into a losing trade above yesterday.
– Since the EUR/USD is in a trading range, the market will probably disappoint both the bulls and bears, and the market will go sideways. One possibility is that today is a disappointment bar for the bulls, and a weak second entry short for the bears, which would confuse both sides.
