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EUR/USD Closes Below Moving Average

Published 05/10/2023, 09:29 AM
Updated 07/09/2023, 06:31 AM
EUR/USD
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EUR/USD-Daily Chart

  • The EUR/USD closed under the moving average yesterday for the first time in several bars.
  • This is a sign that the market is converting into a trading range and will probably begin to go sideways to down soon.
  • Since the market spent so much time above the moving average, there will probably be buyers at the moving average for at least a scalp, which is happening now.
  • The bulls want a strong bull close today and a reversal up above the high of May.
  • However, the probable the bulls have is that even if today closes as a strong bull bar, it will force traders to buy in the middle of a tight trading range. In general, buying in a tight trading range is a low-probability trade. This means that sideways is more likely.
  • Overall, the bears completed the first task of getting a close below the moving average; however, they must do more. The bears need to get consecutive closes below the moving average. Until then, the odds are that the market will continue to go sideways in a tight trading range.

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