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EUR/USD Wedge Rally

Published 01/20/2017, 12:59 AM
Updated 07/09/2023, 06:31 AM
EUR/USD
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EUR/USD 240 Min Chart

The 240 minute EUR/USD Forex chart has had 2 big legs up after a wedge bottom. The 2nd leg has two parts, and therefore there are 3 legs up. This is a wedge top. The odds favor a test down to test higher lows, but there might be one more new high 1st. Spike and Channel rallies like this usually evolve into trading ranges. That is therefore likely here. Less likely, there will be a strong breakout above the top and then a measured move up.

The 3 week rally on the daily chart is weak. Hence, it is more likely a bear flag than the start of a bull trend. Therefore the odds favor a test down soon, and then an evolution into a trading range.

Overnight EUR/USD Forex trading

The EUR/USD sold off in the past 10 minutes. This could be the start of the test down to prior higher lows after the wedge top on the 240 minute chart. The 3 legs up were strong enough so that there might be one more new high 1st, but the odds favor a swing down starting today or soon.

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