EUR/USD Remains in Tight Trading Range
The EUR/USD currency pair has been in a sideways pattern, with bears breaking the bull trend line but not achieving a downside breakout. This lateral movement may continue until the market reaches the moving average below.
Market Behavior Suggests Difficulty in Achieving New Highs
The market has been away from the moving average for over 25 bars, which indicates climactic behavior that may make it difficult for the market to achieve a successful breakout to a new high without reaching the moving average first. If the bulls do manage to break above the Dec. 15 high, the market may still fail at a new high and reverse back down to the moving average.
Traders should anticipate that the market will continue going sideways, potentially reaching the moving average in the near future.