The EUR/USD currency pairs has been swinging wildly from week to week, reports Al Brooks.
The EURUSD currency pair has been in a trading range for eight months. It is reversing up from the bottom of the range. Traders should expect higher prices this week.
The EURUSD has had exceptionally big reversals for a couple of months as illustrated in its weekly chart (see below). That increases the chance of a breakout up or down. When a chart is in Breakout Mode, there is a 50% chance of either a bull or bear breakout. The chart would not be going sideways for eight months if either side were clearly in control.
A Breakout Mode pattern also has a 50% chance of the first breakout attempt failing. March had both a failed bull breakout and a failed bear breakout.
Two weeks ago was a Low 1 sell signal bar. Last week triggered the sell signal by trading below the previous week’s low. But there were more buyers than sellers below the sell signal bar. Last week is now a buy signal bar for this week.
The EURUSD is near the bottom of the eight-month trading range. It reversed up again last week after strongly reversing up three weeks ago. This increases the chance of higher prices this week. The targets above are the March 27 high and maybe even the March 9 high.
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