The EUR/USD 60-minute chart pulled back yesterday after testing the September trading range low. Because the 9 day rally was strong enough to remain in a micro channel, the odds are that the bulls will buy this 1st reversal down. The 1st target for the bears is the breakout point at the October 28 high.
Overnight EUR/USD
The 60-minute EUR/USD Forex chart continued its 2 day pullback from its buy climax test of resistance. It is testing breakout points. Traders are waiting for the results of the presidential election today before deciding whether the pullback will be all of the way to the October 25 bottom of the rally, or end at the current support. Because the 3-week rally was so strong, the best the bears probably will get over the next week is a deep pullback in a trading range.
With the uncertainty of tonight’s election results, the odds favor a continuation of the 30 pip tall tight range from yesterday. Traders will mostly scalp, unless there is a surprisingly strong breakout up or down.