EUR/USD: Trading Range For Another Month Likely

EUR/USD in 4-day tight trading range in 3-week rally from wedge bottom. Tight trading range late in rally often is Final Bull Flag, so increased risk or reversal down within a few days of breaking above bull flag.

EUR/USD Daily

Mar. 18 high was start of final leg down in 2-month wedge bottom, and it is a magnet above.

Since rally has 3 legs up in a tight bull channel, it is a parabolic wedge buy climax. That usually will soon attract profit takers, but might reach March 18 high first.

Bears want reversal down from double top with March 18 high, and then resumption of 4-month bear trend.

Rally is reversal up from 2-month wedge bottom. Usually will get higher low and second leg up. Bulls should buy 1- to 2- week pullback for second leg up.

Trading range likely for at least another month.

Overnight EUR/USD Forex trading on 5-minute chart

Sold off early in overnight session, but reversed up from above Friday’s low. Now testing Friday’s high.

4 sideways days in tight trading range. So far, today is second consecutive inside day.

After strong overnight reversal up in 3-week bull trend, bear trend is unlikely today. Bulls should buy pullbacks.

Near top of 4-day tight trading range, and today’s range is already an average size. Reduced chance of strong continuation of overnight rally. Bulls have been buying at the market, and swing trading, but will probably soon switch to buying pullbacks and scalping.

Sideways for 3 hours but biggest pullback has been less than 20 pips. Day traders are still more interested in buying, but since in trading range, some will begin to look to sell reversals down for scalps.

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