EUR/USD: Trading Range Likely To Continue
Al Brooks | Apr 21, 2021 09:51AM ET
EUR/USD is reversing down from third leg up in tight bull channel, so parabolic wedge rally.
At bottom of December/March trading range and 50% pullback.
Should soon get minor reversal down, for a couple weeks to around 50% pullback and April 8 low, which was the start of the wedge.
Bulls want Small Pullback Bull Trend to continue up to above January high.
Bears want resumption of 4-month bear trend.
9-month trading range likely to continue for at least a couple more month
Sold off overnight in Trending Trading Range Day, which is a weak bear trend.
Trading range for 5 hours, so day traders are buying reversals up, and selling reversals down for scalp.
Bulls hope for higher low major trend reversal back to open of day, so that today will be High 1 buy signal bar on daily chart.
Bears want breakout below 5-hour trading range, and for today to close near its low.
Most likely will not be strong bull or bear trend today. Day traders will probably scalp all day.
If today closes near its low, then increased chance of lower prices for a couple weeks.
If today reverses up and closes near its high, bulls will expect higher prices tomorrow.
However, probably limited upside over next week, since 2-week pullback likely soon.
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