The daily Forex chart has been in a tight trading range for 2 months. It will probably break out within a couple weeks.
The EUR/USD daily Forex chart has been sideways in a tight range for 2 months. However, the bears have not had 3 consecutive bear bars. The bulls however currently have 3 consecutive bull bars and they had 4 two weeks ago. This is a slight advantage for the bulls.
But, it is not enough reason to be holding a swing trade, expecting a bull breakout. It is a sign of buying pressure. It, therefore, makes a bull breakout slightly more likely than a bear breakout.
However, until there is a breakout, there is no breakout. It is better to continue to bet on reversals until there is a strong breakout up or down. That means that traders are looking for reversals.
Since Forex markets often begin trends at the 1st of the year, there is an increased chance of a breakout within the next couple of weeks. In addition, the current tight range has lasted about 2 months. Over the past 3 years, breakouts typically came after around 2 months. Traders need to be ready to change from reversal trading to trend trading once the breakout begins.
Overnight EUR/USD Forex Trading
The EUR/USD 5 minute Forex chart has been in a 45 pip range overnight. Most of the bars have been small, had prominent tails, and overlapped several prior bars. This is quiet, trading range trading. Day traders have been are looking for 10 pip scalps. Because of the worldwide holiday, this quiet trading is likely to continue all day.
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