Today is forming a small double bottom bull flag on the EUR/USD daily Forex chart. More importantly, it is at the apex of a triangle in the middle of a 3-month trading range. It is therefore neutral.
The EUR/USD daily Forex chart is neutral ahead of Wednesday’s FOMC announcement. While there is a small double bottom after a 6 bar rally 2 weeks ago, the chart will more likely stay between 1.23 and 1.24 for several more days.
This week so far is a doji bar on the weekly chart, and it followed 2 other doji bars. This is neutral trading, and markets resist changing their current behavior. Trends last a long time, and so do trading ranges. Therefore, the odds are that this week will close near the 1.2311 open of the week. That means the 1.2311 will be a magnet today.
Overnight EUR/USD Forex Trading
The EUR/USD 5-minute chart has been in a 15 pip range for the past 4 hours. This is extremely unusual and therefore there will be a breakout sometime this morning. However, the odds of a big move up or down are small. Most day traders will not trade when the range is only 15 pips. Hence, they will wait for the breakout.
The daily chart so far has a bull body and a small double bottom after a 2-week rally. However, the odds are that this week’s candle on the weekly chart will not have a big body when the week closes today. Therefore, any breakout today will probably not get far. All financial markets will probably be quiet ahead of next Wednesday’s FOMC announcement.