EUR/USD: Wedge Top, Test of Dec. 13 Low Likely

EUR/USD
-0.38%

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EUR/USD Daily Chart.

• The EUR/USD bears broke above the measured move target (purple line) from the Nov. 10 and 11 bull breakout. However, the market found sellers and yesterday closed as a bear bar.
• The bulls have had a tight bull channel since Nov. 21. However, it forms consecutive buy climaxes and increases the risk of a selloff down to the moving average and the forming of a trading range.
• At a minimum, the market will probably test the Dec. 13 low, which is the bottom of the most recent buy climax and arguably the third push-up in a wedge top.
• Overall, traders should expect sideways to down over the next couple of weeks, and the market will form a trading range with the channel that began on Nov. 21.

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