EUR/USD Approaches Wedge Top, Sideways Movement Likely
- The EUR/USD broke above the February 2nd high and reversed down after forming a wedge top on the daily chart.
- The bears hope the wedge will have two legs down and test the April 10th low, the bottom of the third leg.
- The bulls see the rally up to the April 14th high as a strong enough three-bar breakout to have a 2nd leg up. They want any second leg up to break far above the April 14th high.
- The bears had a decent entry bar yesterday following the April 14th signal bar for the wedge. The bears need to breakout below the moving average (blue line). Otherwise, it will probably act as support.
- Since the channel up is tight, the market will probably have to go sideways and disappoint both the bulls and the bears.