Strong Start For EUR/USD Bulls Today But…

The EUR/USD on the daily chart has been in a bull trend since the March low. Today so far is a big bull bar closing near its high. It is breaking far above last week’s high and the bear trend line at the top of the triangle. If today closes near the high if the day, traders will expect a test of the June high.

EURUSD Forex breakout of triangle in bull trend

The EUR/USD on the daily chart has been in a bull trend since the March low. Today so far is a big bull bar closing near its high. It is breaking far above last week’s high and the bear trend line at the top of the triangle. If today closes near the high if the day, traders will expect a test of the June high.

I mentioned over the weekend that there was an ii on the weekly chart. I also said that there would probably be a breakout above or below this week. Today is a breakout above.

Also, every market is always in some kind of a channel. Since the EUR/USD is in a bull trend, it is in a bull channel. If the EUR/USD continues up this week, traders will expect the rally to reach the top of the wedge bull channel based on the March 27 and June 10 highs. That would require a break above the June high and it would be the highest price in over a year.

It is important to remember that the EUR/USD is still in the June trading range. As long as it is in a trading range, the probabilities are never as high as they might appear. While today so far is good for the bulls, if it ends with a big tail on top, like June 23, traders will begin to think that today might just be a test of the June 16/June 23 double top and not of the June 10 high.

Overnight EUR/USD Forex trading

The 5 minute chart of the EUR/USD Forex market has rallied in a tight bull channel overnight to far above Friday’s high. Day traders are only buying and they have been swing trading and scalping.

At some point, they will start to take profits. This will convert the bull trend into at least a small trading range. If the height of the range grows to about 30 pips, some day traders will begin to sell for scalps. Also, they will switch from buying at the market to buying 10 – 20 pip pullbacks.

However, unless there is a reversal down of 50 or more pips, which is unlikely, it will continue to be easier to make money as a bull.

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