EUR / USD Forex Market Trading Strategies: Strong Bearish Trend At Play
EUR / USD daily forex chart
We have a strong bearish trend in play for.
Today triggered a sell signal from the bearish flag from low 1 passing below Friday’s low. The target below is the November 4th low, which would be the start of the last leg of the wedge top on the weekly chart. There is also the possibility of a wedge dip, which could turn into a short 2 week hedging rally.
The bulls are hoping that today will be a higher low and the start of a rally. Bulls target the March 9 low, which is the most recent break point, then the March 9 high, which is the start of the most recent sales high.
Day to day EUR / USD forex trading on a 5 minute chart
- It fell below yesterday’s low triggering a sell signal Low 1 on the daily chart.
- Inverted sharply from the bottom of the expanding triangle.
- The rally has been strong enough that traders are expecting at least a small second side step to the upside.
- Bulls want the uptrend to last all day. Today they would like to surpass Friday’s high and become a bullish day outside. They also want today to close on the top.
- Day traders only buy in the last few hours.
- They will continue to buy only until there is at least a 20 pip sell-off.
- If there is a 20 pip sell-off, a trading range will be more likely than a downtrend.
- Bulls will buy withdrawals and then bears will sell reversals from new highs for scalps.
- Since this is the possible start of a 2 week rally, some bulls will be looking to hold some of their position to get a head start on the daily chart.
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