EUR/USD Technicals
Al Brooks | Dec 26, 2019 10:37AM ET
The daily chart of the EUR/USD Forex market has been in a tight trading range for 4 days. It is also in the middle of a 3-month range and a 5-month range. It is therefore in Breakout Mode. This week and next week will probably remain quiet because of the holidays.
The odds are that there will be an eventual end of the 2-year bear trend and then the start of a big trading range from around 1.08 to 1.18 over the next year. Traders are deciding if the low is in or whether there will be another brief low or two before the swing up begins.
Forex markets often have major transitions around the start of a year. Consequently, there is an increased chance that the EUR/USD will begin a yearlong weak rally soon.
The 5 minute chart of the EUR/USD Forex market have been in an unusually tight trading range for 4 days. Day traders are scalping. But when the range is this tight, there are few opportunities to make much money.
Because big moves often come at the start of a new year, day traders are ready for a surprisingly big move up or down. However, they know that this is the 4th very small day. That increases the chance that today will also be very small.
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