EUR/USD Daily Chart
- The EUR/USD pair overlaps the past eight trading days in a tight trading range.
- The bulls want the channel (blue line) to continue; however, the rally is under a lot of selling pressure.
- The bulls hope that the breakout from the Jan. 6 low will lead to a measuring gap; however, more likely, the upside will be limited, and the market will break below the Jan. 2 low and continue to go sideways inside the larger December trading range.
- The market will probably go sideways to down over the next several weeks and test the higher low major trend reversal target at 1.044 (see chart).
- The weekly chart has been in a tight bear channel since the middle of 2021, and the rally from October 2022 is the first major trendline break.
- Most major trend reversals have at least a 30% pullback before forming a higher low, which would be a pullback to 1.044 on the daily chart.