EUR/USD Forex Parabolic Wedge Rally To Minor Lower High
Al Brooks | Oct 17, 2018 09:20AM ET
The EUR/USD daily Forex chart is turning down from a parabolic wedge lower high. It should find support around the October 9 higher low.
For the past 4 days, I said that there would probably be a parabolic wedge lower high. Furthermore, it would lead to a 3 – 5 day pullback to test the October 9 high or low. The EURUSD is turning down, as expected. But, the odds are that it will form a double bottom with the October 9 low.
The bears see a head and shoulders top where August 28 formed the left shoulder. They currently have a 30% chance of a measured move down to below the August 15 low. However, there will probably be a 2 legged, 3 – 5 day selloff to below 1.15.
There is no sign that the 6 month trading range is about to break out. Traders expect reversals after every 5 – 10 day leg up or down.
h3 Overnight EUR/USD Forex trading/h3
The EUR/USD 5 minute Forex chart sold off 100 pips from yesterday’s high. In addition, the selloff over the past 2 hours has been strong. But, there is support around the October high at around 1.15.
After a wedge rally, the selloff will probably have 2 legs down. That means that there will soon be a bounce. The 1st leg down should end this week. Consequently, today will probably transition into a trading range as the 1st leg down looks for a bottom. Traders will stop swing trading their short positions and begin to scalp up and down.
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