- The EUR/USD has formed a tight bull channel since the March 15th low.
- The bears are beginning to develop more selling pressure, increasing the odds of the channel evolving into a trading range soon.
- It was reasonable to buy the April 13th high close and scale in lower. This means it is a magnet, and the market will probably have to reach it soon.
- The bulls have a small micro double bottom and want today to break above yesterday’s high.
- Overall, traders should expect sideways over the next week or two. The bulls got three strong bull bars last week. However, the bears got two decent bear bars following the breakout. A strong rally followed by a strong reversal typically creates sideways trading.