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EUR/USD: Minor Reversal From Nested Wedge

Published 04/06/2021, 09:52 AM
Updated 07/09/2023, 06:31 AM

EUR/USD is in a short covering rally from it's nested wedge rally. It should get above the Mar. 9 low breakout point. It could reach the Mar. 18 high, which is the top of the most recent sell climax.

A bear flag (minor reversal) is more likely than a bull trend reversal (major reversal), unless EUR/USD breaks strongly above the Mar. 18 lower high.

EUR/USD forex daily chart

EUR/USD forex short covering rally from nested wedge bottom

Overnight EUR/USD forex trading on 5-minute chart

  • Trading above yesterday’s high, just a few pips below the Mar. 9 low.
  • It should get above that low today, or this week.
  • Small overnight rally from double bottom pullback.
  • Breaking above the overnight trading range. During the trading range, day traders were buying and selling for scalps.
  • If the bull breakout of the past hour accelerates up strongly above the Mar. 9 low, day traders will swing trade part of their long positions, and they will stop shorting.
  • Bears want a reversal down from around the Mar. 9 low, but no top yet.

Latest comments

will it go below 1.75 ?
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