The EUR/USD daily Forex chart has been in a tight trading range for 7 days. Since it is after a strong rally, it is a bull flag. The odds favor a bull breakout.
The EUR/USD daily Forex chart has been in a tight trading range for 7 days. There is a 60% chance of a bull breakout and a 40% chance of a bear breakout. As more days get added, the probabilities will approach 50%.
Since the chart is testing the bottom of a 10-year trading range on the monthly chart, it is at resistance. It is also near the top of a wedge rally on the monthly chart. Consequently, the bears are hoping for a reversal down that could last several months. Yet, in the absence of consecutive big bear bars on the daily chart, the odds continue to favor higher prices.
Overnight EUR/USD Forex Trading
The 5-minute chart has been in a tight trading range for 5 days. In addition, it has been in a 60-pip range for 2 days. As a result, day traders are scalping, waiting for a strong breakout up or down.