The EUR/USD is breaking out below a 9-day tight trading range, following a strong three-bar breakout. While this is good for the bears, it is getting low in a likely trading range.
The market will probably bounce soon. However, it may have to get closer to the January 6th low before the market bounces.
The market will likely need to form a higher lower major trend reversal before the bears can argue that the market is in a bear trend.
Bulls will try and argue that the daily chart is in a bull trend as long as the market stays above the January 6th high.
While this is true, the odds are the market is in a trading range and will likely reach the January 6th high, even if the market forms a lower high major trend reversal first.
Overall, traders should expect a bounce over the next couple of days and more sideways trading.
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