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EUR/USD: Weak Wedge Bottom

Published 08/30/2016, 09:26 AM

EUR/USD 60 Min Chart

The EUR/USD 60 minute Forex chart has a wedge bottom after a strong bear breakout. Yet, the wedge is in a tight bear channel and it has not reached a measured move target. Any reversal up will probably be minor, which means that it would probably create a trading range instead of a bull trend.

The wedge bottom on the 60 minute chart is weak because it is in a tight bear channel. Consequently, it does not contain big bull swings, which would be a sign of strong buying.

This therefore reduces the probability of a trend reversal. Hence, it increases the probability of a Breakout Mode candlestick pattern (trading range) over the next couple of days. Then, there would be a 50% chance of a breakout and measured move up or down.

The overnight EUR/USD Forex market traded mostly in a 20 pip range. The US session will probably be a little bigger, but the odds are that today will be a small day and day traders will mostly scalp.

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