The EUR/USD 240 minute chart has rallied strongly for 9 days in a tight bull channel. Since it is now forming a wedge top, it will probably enter pullback and form a trading range.
The 7 week rally has been strong, especially over the past 9 days. Yet, the strong 9 day bull breakout has been getting pullbacks on the 240 minute chart. Since it now has 3 pushes up, the channel is a wedge top. Hence, the odds are that a pullback will soon grow into a trading range. While it might have one more push up 1st, the wedge is probably too far below the November 9 major high to get there before forming a trading range.
When a breakout slows into a channel, and then into a trading range, it has to pullback for enough bars and pips to generate confusion. The bears usually have to create a credible top. This process will probably take at least a couple of weeks on the 240 minute chart. The odds will still favor trend resumption up to the November 9 high. Yet, they be less than now, and closer to 50%.
Targets for the bears when a channel becomes a trading range are the higher lows in the wedge. Therefore, the pullback might be 150 pips deep.
Overnight EUR/USD Forex trading
When a market is pulling back into a trading range, the lower time frame charts also become more two-sided. Since the 240 minute chart will likely pull back about 150 pips over the next 2 weeks, day traders will begin to make money selling in addition to buying. Furthermore, day traders will begin to scalp more.