Breaking News
0

EUR/USD Bull Flag

By Al BrooksForexJan 03, 2018 10:23AM ET
www.investing.com/analysis/eurusd-bull-flag-200277268
EUR/USD Bull Flag
By Al Brooks   |  Jan 03, 2018 10:23AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

EUR/USD
EUR/USD

The bears want a wedge rally to a double top. Yet, the 4 consecutive big bull bars are strong enough so that the bulls will buy a test of the November 27 high.


The 4-day rally is testing the top of the 6 month trading range, which is the bottom of a 15 year trading range. Since the 4-day rally has been strong, the bears will probably need at least a micro double top to create a reversal down. More likely, the 1st pullback will become a bull flag and the bulls will again try to get the breakout. Since the EUR/USD daily chart is in a trading range, pullbacks usually fall below support. Therefore, the pullback will probably reach the November 27 high within a week.

The bears hope that the 4 day rally is just a buy vacuum test of resistance. They see a wedge rally from the October 6 low and a double top with the September 8 high. Because the momentum up is strong, the bears will probably need at least a micro double top before they can get a reversal down from the resistance at the top of the 5 month range and at the bottom of the 15-year trading range above. Consequently, the downside risk is to around 1.1950 over the next week.

Overnight EUR/USD Forex Trading


The EUR/USD 5-minute Forex chart pulled back about 70 pips from yesterday’s high in a broad bear channel. The bulls are searching for a bottom of what they see as a pullback on the daily chart. However, the 4-day rally to resistance has been climactic. Consequently, the odds favor a trading range over the next few days.

Because the momentum up has been strong over the past week, the bulls will scalp and swing trade. Many will wait to swing trade until after at least a couple legs down from yesterday’s high and a test below the November 27 high. Alternatively, they will wait for a strong breakout above the top of the 5-month trading trading range.

Since the bears know that a trading range is likely over the next few days, day traders will sell rallies for scalps.

EUR/USD Bull Flag
 
EUR/USD Bull Flag

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email