EUR/USD Trading Strategies: 11_13_19
Al Brooks | Nov 13, 2019 11:32AM ET
The EUR/USD Forex on the daily chart has continued down in a tight bear channel. It is now testing the October 15 higher low. The bulls want a double bottom with that low. A reversal up would be a higher low major trend reversal. Traders would look for at least a test of the October high.
But a tight bear channel typically needs a micro double bottom before there can be a reversal. Consequently, the best the bulls can probably do over the next few days is to stop the selling and begin a small trading range.
The bears want the bear trend to continue. That means they need a break below the October low. There are 2 measured move targets around 1.08 and a gap there as well. At the moment, a bounce is more likely within a couple weeks. Since the recent bars are small, and the chart is just above support, today will also probably be mostly another trading range day.
The EUR/USD 5-minute chart has been in a 25 pip range overnight. Day traders are scalping reversals for 10 pips, as they have been doing for days. Until there is a strong breakout up or down, they will continue to scalp.
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