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.
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