Market Overview: EURUSD Forex
The weekly candlestick was a EURUSD bear doji testing the triangle top. The bears want a reversal from a wedge bear flag from around the top of the triangle pattern. If there is a pullback, the bulls want at least a small second leg sideways to up to retest the current leg extreme high (Jul 17).
EURUSD Forex market
The Weekly EURUSD chart
![EURUSD Bear Doji 1 EURUSD Weekly: Bear Doji at Resistance, EURUSD Bear Doji](https://www.brookstradingcourse.com/wp-content/uploads/2024/07/EURUSD-Weekly-Bear-Doji-at-Resistance-680x383.jpg)
- This week’s candlestick on the weekly EURUSD Forex chart was a doji with a long tail above.
- Last week, we said that the odds slightly favor the market to trade at least a little higher. Traders will see if the bulls can create another follow-through bull bar or will the market trade slightly higher but stall and close with a long tail above or a bear body?
- The market traded higher testing near the bear trend line in the first half of the week but reversed to close almost unchanged.
- Previously, the bulls had a reversal from a higher low major trend reversal and a wedge bull flag (Feb 14, Apr 16, and Jun 26).
- They created a 4-bar bull microchannel closing above the 20-week EMA testing near the bear trend line. Buyers may be below the first pullback from such a strong bull microchannel.
- While this week traded above the June high, the bulls weren’t able to create follow-through buying.
- They need to create a breakout above the June high and the triangle with follow-through buying to increase the odds of a retest of the trading range high (Dec 28).
- If there is a pullback, the bulls want at least a small second leg sideways to up to retest the current leg extreme high (Jul 17). They want the 20-week EMA to act as support.
- The bears see the current move simply as a buy vacuum and a bull leg within a trading range.
- They want a reversal from a wedge bear flag (Mar 8, Jun 4, and Jul 17) or a double top bear flag (Jun 4 and July 17) from around the top of the triangle pattern.
- They need to create a strong entry bar with follow-through selling to increase the odds of a deep pullback.
- They want the bear trend line to act as resistance.
- Since this week’s candlestick is a doji bar closing in its lower half with a long tail above, it is a sell signal bar for next week albeit weaker.
- However, it is following a 4-bar bull microchannel and a tight bull channel up. The first pullback may only be minor.
- Traders will see if the bears can create a strong entry bar or will the market trade slightly lower but stall and reverse higher.
- The market is trading around the upper third of the trading range which can be the sell zone of trading range traders.
- The bear trendline is an area of resistance.
- The EURUSD is in an 87-week trading range. (Trading range high: July 2023, Trading range low: Oct 2023).
- Traders will continue to BLSH (Buy Low, Sell High) within a trading range until a breakout with follow-through selling/buying.
- Poor follow-through and reversals are hallmarks of a trading range.
The Daily EURUSD chart
![EURUSD Bear Doji 2 EURUSD Daily: Parabolic Wedge at Resistance](https://www.brookstradingcourse.com/wp-content/uploads/2024/07/EURUSD-Daily-Parabolic-Wedge-at-Resistance-680x383.jpg)
- The EURUSD traded sideways to up in the first half of the week. Thursday was an inside bear bar with follow-through selling on Friday.
- Last week, we said that traders would see if the bulls can continue to create follow-through buying breaking above the June high and the triangle. Or will the market stall around the June high and form a pullback to the 20-day EMA?
- The bulls got a reversal from a higher low major trend reversal and a wedge bull flag (Feb 14, Apr 16, and Jun 26).
- They created a tight bull channel far above the 20-day EMA. That means strong bulls.
- While the market traded above the June high this week, there was no follow-through buying.
- If the market trades lower, the bulls want the 20-day EMA to act as support.
- They want at least a small second leg sideways to up to retest the current leg extreme high (Jul 17) after a pullback.
- The bears see the current move simply as a buy vacuum testing the trading range high and the bear trend line.
- They see a larger wedge bear flag forming (Mar 8, Jun 4, and Jul 17), a double top bear flag (Jun 4 and Jul 17) and a parabolic wedge (Jul 5, Jul 12, and Jul 17).
- They want a reversal from around the upper third of the trading range and want the bear trend line to act as resistance.
- They need to create follow-through selling trading below the 20-day EMA to increase the odds of testing the June low.
- So far, the move up from June 26 is in a tight bull channel therefore strong.
- The move lasted a long time and is slightly climactic.
- The odds slightly favor a minor pullback (likely 2-legged) which may have started this week.
- The move up is strong enough for traders to expect at least a small second leg sideways to up to retest the current leg extreme high (Jul 17) after the pullback.
- However, if the bears get strong consecutive bear bars, it could swing the odds in favor of the bear leg beginning.
- The market is trading around the upper third of the trading range which can be the sell zone of trading range traders.
- The bear trendline is an area of resistance.
- Traders will continue to BLSH (Buy Low, Sell High) within a trading range until there is a breakout with follow-through selling/buying.
- Poor follow-through and reversals are hallmarks of a trading range.
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Parabens pela sua analise
Ola Anderson.. Muito obrigado..
Andrew