- The EUR/USD continues to go sideways in a tight trading range holding above the moving average (blue line).
- The market is still Always In Long. However, the past five trading days have had a lot of overlapping bars. This increases the risk of more trading range price action.
- The bulls want the tight bull channel to continue up, and the bears want a downside breakout and test of prior lower highs, such as April 17th.
- The bears need to get a close below the moving average. Without it, traders will continue to buy at the moving average, betting it will act as support.
- At the moment, the odds are that the bull channel that began in March will convert into a trading range and test prior lower highs. However, without a downside breakout, the market will probably have to go sideways and develop more selling pressure.
EUR/USD in Breakout Mode
