EUR/USD Next Leg Up Likely After a Pullback

EUR/USD
-0.32%

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EUR/USD-Daily Chart

• The EUR/USD has gone sideways for four days following the strong consecutive two-bar breakout (July 12th and 13th) that closed far above the May high. This breakout is a strong enough surprise that it will likely get a second leg up.
• The bears are hopeful that the recent strong breakout (July 13th) is the exhaustion that will lead to a second leg trap. While this is possible, it is more likely that the Bulls will get a second leg up.
• If the bears will take control, they will need to show more signs of strength. At a minimum, the bears must get consecutive bear bars closing on their lows to convince traders that the bears are gaining control.
• Overall, traders should expect the market to continue to go sideways to up, and the bulls will get a second leg up of the recent strong bull breakout.

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