Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

EUR/USD In Tight Bull Channel, Sideways Movement Likely

Published 05/04/2023, 09:28 AM

EUR/USD-Daily Chart

  • The EUR/USD formed an upside breakout following yesterday’s FOMC release.
  • While the bulls hope the rally will continue and break far above the April high, the trading range will likely continue.
  • Traders will fade strong bull bars betting that gaps close. They will also fade strong bear trend bars.
  • I have said several times that the odds are the bull channel that began on March 24th will likely convert into a trading range and test prior lower highs. However, the bears need to get closes below the moving average (blue line), or else traders will assume every test of the moving average will fail.
  • At the moment, the bears are trying to form a truncated wedge with April 14th, April 27th, and today’s high. A truncated wedge means that the last high forms a lower high instead of a higher high. This is due to sellers overwhelming buyers at the prior high (April 26th).
  • Overall, traders should expect more sideways trading. The bears want today to close on its lower and reverse yesterday’s rally. This would set up a potential stop entry short for a test below the moving average.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.