Potential for reversal up
The EUR/USD Forex market on the daily chart is near the bottom of a month-long trading range. That usually leads to a reversal up. This is especially true when there are bull bars closing near their high. April 24 and May 7 are 2 examples.
Today might be another, especially if it closes above yesterday’s high. It is already an outside up bar, and a close above yesterday’s high would be an additional sign of strong bulls.
Every trading range always has both a reasonable buy and sell signal. The bears have a double top with the April 15 and May 1 highs. The May 7 low is the neckline. If the EUR/USD breaks below that price, it will trigger the double top. The bears would then look for a measured move down from there.
The bulls have a head and shoulders bottom. It will trigger if there is a rally to above the May 1 high. That double top is the neckline. If the bulls get their breakout, they will look for a measured move up.
Today might be another, especially if it closes above yesterday’s high. It is already an outside up bar, and a close above yesterday’s high would be an additional sign of strong bulls.
Every trading range always has both a reasonable buy and sell signal. The bears have a double top with the April 15 and May 1 highs. The May 7 low is the neckline. If the EUR/USD breaks below that price, it will trigger the double top. The bears would then look for a measured move down from there.
The bulls have a head and shoulders bottom. It will trigger if there is a rally to above the May 1 high. That double top is the neckline. If the bulls get their breakout, they will look for a measured move up.
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