Micro double top with high from 2 days ago.
EUR/USD is turning down today from nested wedge rally to double top.
If today closes in bottom third of range, then reasonable sell signal bar for Monday.
4-day tight trading range and 8-week tight bull channel, increase chance of more sideways instead of major reversal.
Target is 1.20 area, since Big Round Number, middle of 4-week range, around 50% pullback, and top of Mar. 11 breakout point.
Bulls need consecutive closes above Feb. 25 high for successful breakout. Then, will try for break above Jan. 6 high, which is top of 2-year range.
Overnight EUR/USD Forex trading on 5-minute chart
Strong reversal down 2 hours ago, after small break above yesterday’s high.
Sell climax forming micro double bottom just below yesterday’s low, and bottom of 4-day trading range.
Selloff could simply be test of bottom of that range.
Bears want break below yesterday’s low. Today would then be outside down day.
Bears want today to close below yesterday’s low, which would increase the chance of reversal down.
Bulls want today to close in middle third of range. That would reduce the chance of lower prices on Monday.
Bulls want today to close above midpoint of week, which would increase chance of sideways to up next week.
Since 4-day tight trading range in strong rally, odds are against much lower prices today.
Probably will begin to form trading range, and traders will fight over close of day and close of week.
Unless series of strong trend bars up or down from here, traders will look for reversals.