EUR/USD: Strong Minor Reversal Up From Nested Wedge
Al Brooks | Apr 08, 2021 09:45AM ET
EUR/USD is currently experiencing a possible micro double top in a 4-month bear channel. Following the wedge bottom, the 2nd leg up is likely.
If there is a selloff, it will probably only last a few days, and will reverse back up from a higher low.
A reversal up from a wedge bottom typically comprises at least 2 legs up, and it usually reaches the top of the most recent sell climax, which was the Mar. 18 high at the 1.20 Big Round Number.
h2 EUR/USD Forex daily chart/h2 h2Overnight EUR/USD forex trading on 5-minute chart/h2
- Traded a fraction of a pip below yesterday’s low and reversed up.
- In very tight trading range overnight. Day traders are buying reversals up, and selling reversals down from 10-pip scalps.
- Day traders will continue to scalp unless there is a strong breakout up or down, which is unlikely today.
- Since the rally on Monday and Tuesday was extreme, there's probably limited up side from here without more sideways to down.
- Traders are looking to buy a pullback on the daily chart, which reduces the chance of big bear day.
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