reversed from a low point near the low of a one-year trading range. It is expected to test the June 25 low, but could drop another leg first. Buyers will likely make an appearance once EUR / USD hits July 7th low. If there is a breakout below this low then the pair should reverse again and form a bigger bottom.
Today EUR / USD reverses from a small double top with the July 7th high. The bottom of the little wedge should lead to at least a small second leg laterally up, so we’ll probably only have a 1-2 day pullback.
Traders decide if the rally to the June 25 high has started, or if there will be a brief sell below the July 7 low before the reversal up. The pair could form a small triangle starting with the July 7 high before a decision is made.
Nothing is clear in a trading range, so when nothing is clear (clear means high probability) the market is likely in a trading range. And this line started on June 18th.
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