EUR/USD forex market trading strategies
has been in a bear channel since Jan. 6 with magnets (view daily chart below) at Nov.11 higher low, bottom of a wedge, and a measured move target.
The most important magnet, however, is the Nov. 4 low at 1.16 because that was the start of the final leg up of the wedge rally on the weekly chart. I have been saying since January, that to top that the selloff probably had to reach that low.
Traders have bought below prior lows so it might bounce again at any time. And there’s no sign of bottom, so traders will sell every rally until the bulls start to get higher highs and lows.
Overnight EUR/USD forex trading on 5-minute chart
- Tuesday’s strong bear breakout weakened into a bear channel yesterday. A channel is a weaker bear trend which usually continues to lose momentum and evolves into trading range.
- It’s been in a broad bear channel since yesterday, so day traders have been buying and selling for scalps.
- Since a bear channel is a bear trend, there’s a higher probability of making money by selling rallies than by buying reversals up.
- Since it’s oversold, a swing up can occur at any time.
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