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EUR/USD in Breakout Mode

Published 05/01/2023, 09:24 AM
Updated 07/09/2023, 06:31 AM
EUR/USD
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EUR/USD Daily Chart

  • The EUR/USD continues to go sideways in a tight trading range holding above the moving average (blue line).
  • The market is still Always In Long. However, the past five trading days have had a lot of overlapping bars. This increases the risk of more trading range price action.
  • The bulls want the tight bull channel to continue up, and the bears want a downside breakout and test of prior lower highs, such as April 17th.
  • The bears need to get a close below the moving average. Without it, traders will continue to buy at the moving average, betting it will act as support.
  • At the moment, the odds are that the bull channel that began in March will convert into a trading range and test prior lower highs. However, without a downside breakout, the market will probably have to go sideways and develop more selling pressure.

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