Forex Opinion & Analysis

EUR/USD: Odds Favor Second Leg Sideways To Up

EUR/USD forex daily chart

Forex 1st leg up from consecutive wedge bottom

After consecutive wedge bottoms on July 21, odds favor a second leg sideways to up for EUR/USD. If there’s a sell off for a few days, bulls will buy the selloff, expecting a higher low and a test of the start of the bear channel. That is the June 25 major lower high. 

Trading sideways for 5 days at the July 6 minor lower high makes it a Breakout Mode. Today, so far, is the 4th doji bar, making it neutral for 5 days. As such, there’s an increased chance that today will remain sideways.

Bears want a double top bear flag with the July 6 high and a break below the July low. More likely, EUR/USD will reach the June 25 lower high before breaking below the July low. Traders are deciding if it needs to test down first.

That said, could be that the Market might be waiting for Friday’s unemployment report.

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