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EUR/USD: Likely Resistance at January 6th High

Published 02/22/2023, 10:13 AM
Updated 07/09/2023, 06:31 AM
EUR/USD
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EUR/USD Daily ChartResis

  • The EUR/USD had done a good job holding below the moving average for 12 bars which is a sign of strength by the bears.
  • The selloff has had a lot of overlap during those 12 bars. However, the channel down is tight, which lowers the probability of bulls buying.
  • The market is in the buy zone of the January 5th and 6th high, where bears began to get trapped selling during the rally up to the February high.
  • The market is likely in a trading range and will bounce soon. This means traders should expect the bear selloff from the February high to be a possible bear leg in a trading range.
  • Even if the market reaches the January 6th low before getting a bounce, the odds will still favor more sideways.

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