{"id":169274,"date":"2023-01-29T01:30:00","date_gmt":"2023-01-29T09:30:00","guid":{"rendered":"https:\/\/www.brookstradingcourse.com\/?p=169274"},"modified":"2023-01-28T22:21:51","modified_gmt":"2023-01-29T06:21:51","slug":"eurusd-wedge-and-micro-wedge","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/es\/analysis\/eurusd-wedge-and-micro-wedge\/","title":{"rendered":"EURUSD Wedge and Micro Wedge"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Market Overview: EURUSD Forex<\/h2>\n\n\n\n<p>The <strong>EURUSD <\/strong>Forex formed a wedge and micro wedge on the weekly chart. However, the bears are still weak and need to do more to convince traders of a pullback or a reversal. The bulls want any pullback to be sideways and not deep. If the pullback is weak and sideways, the odds of another strong leg-up increase.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">EURUSD Forex market <\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">The <em>Weekly<\/em> EURUSD chart<\/h3>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/01\/EURUSD-Weekly-Wedge-Top-Micro-Wedge.png\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/01\/EURUSD-Weekly-Wedge-Top-Micro-Wedge-680x383.png\" alt=\"EURUSD Weekly: EURUSD Wedge and Micro Wedge\" class=\"wp-image-169433\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/01\/EURUSD-Weekly-Wedge-Top-Micro-Wedge-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/01\/EURUSD-Weekly-Wedge-Top-Micro-Wedge-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/01\/EURUSD-Weekly-Wedge-Top-Micro-Wedge-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/01\/EURUSD-Weekly-Wedge-Top-Micro-Wedge-1536x864.png 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/01\/EURUSD-Weekly-Wedge-Top-Micro-Wedge.png 1920w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li>This week\u2019s candlestick on the&nbsp;<a href=\"https:\/\/www.investing.com\/currencies\/eur-usd\" target=\"_blank\" rel=\"noreferrer noopener\">weekly EURUSD Forex chart<\/a>&nbsp;was a doji bar.&nbsp;<\/li>\n\n\n\n<li>Last week, we said that while odds slightly favor the EURUSD to trade sideways to up, the rally since October has lasted a long time and is climactic. However, the bears are still weak and need to do more to convince traders of a pullback or a reversal.<\/li>\n\n\n\n<li>This week traded above last week\u2019s high but closed below it. It was almost a perfect doji.<\/li>\n\n\n\n<li>The bulls got a strong spike and channel up and hope that the market is now Always In Long.&nbsp;<\/li>\n\n\n\n<li>They want an endless small pullback bull trend up.<\/li>\n\n\n\n<li>Since the September low, the bulls have created bigger bull bodies with closes near their highs with follow-through buying, while the bear bars are weak with no follow-through selling. That means strong bulls.<\/li>\n\n\n\n<li>The strong move up increases the odds of at least a small second leg sideways to up after a deeper pullback.&nbsp;<\/li>\n\n\n\n<li>The bulls want any pullback to be sideways and not deep. If the pullback is weak and sideways, the odds of another strong leg-up increase.<\/li>\n\n\n\n<li>The bears want a 2-legged sideways-to-down pullback lasting at least a few weeks.&nbsp;<\/li>\n\n\n\n<li>However, they have not yet been able to create credible selling pressure with strong bear bars and follow-through selling.<\/li>\n\n\n\n<li>They hope to get a reversal lower from a double-top bear flag (with May\/Jun 2022 high) and a wedge top (Nov 15, Dec 5 and Jan 26).<\/li>\n\n\n\n<li>The last 3 weeks also formed a micro wedge (Jan 13, Jan 18 and Jan 26). The last 2 candlesticks are becoming smaller, which means a loss of momentum from the bulls.<\/li>\n\n\n\n<li>Because of the strong move-up, the bears will need a strong reversal bar or at least a micro double top before traders would be willing to sell aggressively.<\/li>\n\n\n\n<li>Since this week was almost a perfect doji, it is a neutral signal bar for next week.&nbsp;<\/li>\n\n\n\n<li>While odds slightly favor the EURUSD to trade sideways to up, the rally since October has lasted a long time and is climactic.<\/li>\n\n\n\n<li>The wedge and micro wedge patterns and loss of momentum increase the odds that we will see at least a small pullback which can begin at any moment.<\/li>\n\n\n\n<li>For now, the bears are still weak and need to do more to convince traders of a pullback or a reversal.<\/li>\n\n\n\n<li>The levels around 1.080 are resistances (20-month exponential moving average \u2013 not shown on chart).<\/li>\n\n\n\n<li>Traders will see if the bulls can break far above it or if the EURUSD stalls and reverses lower, starting the pullback phase.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">The <em>Daily<\/em> EURUSD chart<\/h3>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/01\/EURUSD-Daily-Wedge-Top-Micro-Wedge-Micro-Double-Top.png\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/01\/EURUSD-Daily-Wedge-Top-Micro-Wedge-Micro-Double-Top-680x383.png\" alt=\"EURUSD Daily: Wedge Top, Micro Wedge, Micro Double Top\" class=\"wp-image-169436\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/01\/EURUSD-Daily-Wedge-Top-Micro-Wedge-Micro-Double-Top-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/01\/EURUSD-Daily-Wedge-Top-Micro-Wedge-Micro-Double-Top-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/01\/EURUSD-Daily-Wedge-Top-Micro-Wedge-Micro-Double-Top-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/01\/EURUSD-Daily-Wedge-Top-Micro-Wedge-Micro-Double-Top-1536x864.png 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/01\/EURUSD-Daily-Wedge-Top-Micro-Wedge-Micro-Double-Top.png 1920w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The EURUSD gapped up slightly on Monday but was mostly sideways above the 1.080 level this week.<\/li>\n\n\n\n<li>Last week, we said that the tight channel up and weak selling pressure continue to slightly favor the EURUSD to trade at least a little higher.<\/li>\n\n\n\n<li>While this week traded above last week\u2019s high, the bulls were not able to get sustained follow-through buying again.<\/li>\n\n\n\n<li>The bears see the move up since September as a 50% pullback of the selloff which started in May 2021.<\/li>\n\n\n\n<li>They want a reversal lower from a double-top bear flag (May\/June 2022 high) and a wedge top (Nov 15, Dec 15, and Jan 26).&nbsp;<\/li>\n\n\n\n<li>The bears see the move up from January 6 as a rally from a final flag (mid-Dec to the first week Jan) and wants the EURUSD to stall and reverse lower soon.<\/li>\n\n\n\n<li>Because of the strong move-up, the bears will need a strong reversal bar or at least a micro double top before they would be willing to sell aggressively.&nbsp;<\/li>\n\n\n\n<li>The EURUSD formed a micro wedge (Jan 13, Jan 18 and Jan 26) and a micro double top (Jan 23 and Jan 26).<\/li>\n\n\n\n<li>Thursday and Friday were consecutive weak bear bars due to the prominent tails below.<\/li>\n\n\n\n<li>The bears need to create strong consecutive bear bars closing near their lows to increase the odds of lower prices.<\/li>\n\n\n\n<li>The spike &amp; tight channel up since October means strong bulls.<\/li>\n\n\n\n<li>The odds slightly favor the market has flipped into Always In Long.&nbsp;<\/li>\n\n\n\n<li>The bulls want an endless small pullback trend higher. They want any pullback to be sideways and not deep.&nbsp;<\/li>\n\n\n\n<li>If there is a deep pullback, the bulls want a reversal from a higher low major trend reversal and a larger second leg sideways to up.<\/li>\n\n\n\n<li>For now, the tight channel up and weak selling pressure continue to slightly favor the EURUSD to be in the sideways to up phase.<\/li>\n\n\n\n<li>However, the rally is climactic and lasted a long time. The wedge pattern, micro wedge and micro double top increase the odds of at least a small pullback which can begin at any moment.&nbsp;<\/li>\n\n\n\n<li>If the pullback is weak and shallow, the odds of another strong leg-up increase.<\/li>\n\n\n\n<li>The bears need to do more to convince traders that a pullback is imminent.&nbsp;<\/li>\n\n\n\n<li>The levels around 1.080 (20-month exponential moving average \u2013 not shown on chart) remain as resistance for now.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Market analysis reports archive<\/h3>\n\n\n\n<p>You can access all weekend reports on the <a rel=\"noreferrer noopener\" class=\"rank-math-link\" href=\"https:\/\/www.brookstradingcourse.com\/blog\/analysis\/\" target=\"_blank\">Market Analysis<\/a> page.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n","protected":false},"excerpt":{"rendered":"<p>Market Overview: EURUSD Forex The EURUSD Forex formed a wedge and micro wedge on the weekly chart. However, the bears are still weak and need to do more to convince traders of a pullback or a reversal. The bulls want any pullback to be sideways and not deep. If the pullback is weak and sideways, [&hellip;]<\/p>\n","protected":false},"author":2836,"featured_media":169433,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"shadow","_genesis_layout":"","footnotes":""},"categories":[1842,136],"tags":[281],"class_list":{"0":"post-169274","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-forex","8":"category-analysis","9":"tag-eurusd-forex","10":"entry","11":"override","12":"shadow"},"featured_image_src":"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/01\/EURUSD-Weekly-Wedge-Top-Micro-Wedge.png","author_info":{"display_name":"Andrew","author_link":"https:\/\/www.brookstradingcourse.com\/es\/author\/andrewa\/"},"_links":{"self":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/169274","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/users\/2836"}],"replies":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/comments?post=169274"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/169274\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media\/169433"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media?parent=169274"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/categories?post=169274"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/tags?post=169274"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}