EUR/USD Hovering Between 2 Important Targets
Al Brooks | Aug 05, 2022 09:34AM ET
- The EUR/USD has been going sideways for over 12 bars in a tight trading range.
- The market is neutral and very close to a 50% probability for the breakout up or down.
- While the odds may slightly favor the bulls due to the bull bars closing near their highs, most traders will see the market as completely neutral.
- The market is deciding on testing the 1.0000 big round number or going up to the 2017 low, and the bottom of the May to June trading range.
- Most traders would rather see the market test down to the 1.0000 big round number and form a double bottom with the July 14 low. That would create a major trend reversal and give the bulls a better chance to break above the August 2nd high (neckline of double bottom), and get a measured move up to the June 27th high, which would also be the middle of the May-June trading range.
- Most traders should wait for the breakout and not trade this tight trading range.
- Today is Friday, so weekly support and resistance is important.
- The week’s open (1.0215) is a magnet, and the market will probably not get far away from it as the market decides on a bull or bear close this week.
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