EUR/USD has been reversing up from a wedge bottom near the bottom of a year long trading range. It should test the June 25 lower high, but might get one more leg down first. Buyers will probably make an appearances once EUR/USD hits below the July 7 low. If there’s a breakout below that low, then the pair should reverse up again and form a bigger wedge bottom.
Today, EUR/USD is reversing down from a small double top with the July 7 high. The small wedge bottom should lead to at least a small second leg sideways to up, so probably we’ll only have a 1–2 day pullback.
Traders are deciding whether the rally to the June 25 high has begun, or if there will be a brief selloff to below the July 7 low before the reversal up. The pair might form a small triangle starting with the July 7 high before a decision will be taken.
Nothing is clear in a trading range, so when nothing is clear (clear means high probability), the market is probably in a trading range. And this range began June 18.