The EUR/USD daily Forex chart has been in a triangle for 3 weeks. While the pullback from the August 28 bull trend reversal might extend lower, the odds are that the daily chart is now in an early bull trend.
The EUR/USD daily Forex chart had a lower high on August 28. The bears hope that the 3 week selloff is a resumption of the 8 month bear trend. However, the reversal up from the August 15 low was strong. In addition, the 8 month bear trend is probably just a bull flag on the weekly chart. Therefore, the daily chart is likely in the early stage of a bull trend that will last many months.
Since the daily chart is now back in its 5 month trading range, it could stall here for a couple of months. In addition, it might break again below the June 21 low. But, the odds are that the August 15 low will hold and the rally will break above the 1.1850 top of the range before the bears break below the August 15 low.
Overnight EUR/USD Forex trading
The EUR/USD 5 minute chart has been in a 35 pip range overnight. That range is in the middle of a 3 week triangle and a 5 month trading range. Day traders will only scalp unless there is a strong breakout up or down. Since the daily chart is reversing every couple of days, the bulls will look to buy below yesterday’s low.