Thursday, December 8, 2022

EUR/USD: Remains In A Trading Range


The forex market on the daily chart has been sideways for 2 weeks in a triangle. This is after an expanding triangle. A triangle after an expanding triangle is a Diamond pattern. Since the chart has been in a trading range for 4 months, it is already in Breakout Mode. A Diamond pattern therefore does not change anything. Until there are consecutive closes above or below the 4-month range, traders will continue to take quick profits and look for reversals.


Today is Friday and this week will probably remain a doji candlestick and an inside bar on the weekly chart. A doji is neutral and an inside bar is another Breakout Mode pattern.

The bulls want the week to close above the open so that the week will have a bull body. That would slightly increase the chance of higher prices next week. The bears want a bear body, which would slightly increase the chance of lower prices next week.

Overnight EUR/USD Forex trading

The 5-minute chart of the EUR/USD Forex market has been in a trading range overnight. Furthermore, it has been in a trading range for 4 days. It is at the apex of a triangle on the daily chart. All of these factors increase the chance that today will remain a trading range day. Day traders are looking for reversals and scalping for 10 pips.

Any day can become a trend day, but given what is happening, the odds are that today will remain a trading range day. But if there is a series of strong trend bars in either direction, day traders will switch to swing trading.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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