EUR / USD: does the pressure continue?
October 16 - October 31
forex market eur / usd on the daily chart has broken below 3 weeks wedge bear flag , bears hope that the channel bears down on september 1 high will continue to fall to below the breakout point from June 10 high.
But so far, the four-day bear trend resumption consecutive shortfall bears great bar closing at their lowest position. That makes the bulls hope that it was only a test on September 30 low, which is the beginning of a small wedge rally. The bulls will try to form a double bottom with either low or 25 Sep low.
While the daily chart form the highest and lowest values, is still in its 3-month trading range. This week make the chart a little more rough, but if the selloff began forming successive large bar bears, bulls will continue to buy. They hope that the last 7 weeks is only a pause in a strong bull trend.
I mentioned over the weekend that the two-week reversal up is Low 1 bear flag on the weekly chart. But I also say that there may be more buyers than sellers below last week’s low for bull bar is great and the 2 successive bull bar.
That means that the bulls have been aggressive. A large bar bull bar signal is a low probability of selling. The 1st reversal back down usually do not go away. EUR / USD tested below the overnight low last week. We will find out whether the bulls will be purchased under the bar weekly sell signal.
Overnight EUR / USD Forex Trading
5 minute chart of the EUR / USD Forex market sold overnight just below last week’s low. Low weekly one that triggered a sell signal. But since last week bull bar is great, it is a weak sell signal bar. Maybe there are more buyers than sellers below.
Overnight selloff also tested 30 Sep low on the daily chart. It was the beginning of a wedge rally 2 weeks. Bears often take some profits there. This can cause the bounce and the market will be sideways for a few bars (days).
Weekly And Daily Will Support Hold?
Traders wondering whether the selloff overnight is just a test to sell a vacuum of support on the daily and weekly charts or the beginning of a bear trend. With the 5-minute chart of stalling for several hours, holding the support so far.
If the bulls can prevent this day from continued far below support, a lot of bulls will buy in the next few days. This will result in a trading range not bear trend resumption. That would make the chart more neutral and not bearish.
Because the EUR / USD has been going sideways for a few hours on the support, the trader is willing to buy. While selling overnight strong enough to make a reversal of the bull trend is not possible today, trading at the support side to reduce the possibility of lower prices much these days. Therefore, the 3 hour trading range will probably continue. day traders will buy and sell for 10 to 20-pips scalp.
Bears will try to get these days to close on low and below the support. It will increase the likelihood of lower prices tomorrow. However, the bulls will try to get today’s close above the support and back above the midpoint of the range that day. Most likely, today will keep trading range and closed around the support or slightly above.