EURUSD – sideways continues
Yes, you guessed it right. EURUSD has gone to extreme sideways-conditions, to an extent that its highly unlikely to return to normal conditions anytime soon. Overall Daily corrective structure is still in a balance between a triangle and a zigzag. Most of all the price has been stalling back and forth in a tight range for few weeks now. One might argue that 2-300 pips is not a tight range. In that case zoom out, sit back and observe the weekly chart snapshot below.
Do you see how price is stalling in one place? This is either a sign of a huge violent move in the making or the market is completely going into hibernation for a prolonged period. Either way this kind of market is not tradable at all.
Forecasts and expectations from previous weeks stay intact. This is in fact the problem in hand with EURUSD. Not producing a net move towards a certain direction. When there is ambiguity regarding the overall corrective structure, stagnant market conditions like these can only add to the difficulty in trading the EURUSD.
Until price breaks out of the blue or the red trendlines, there is no conclusive evidence to support either case.
Here is a closer look at the short term sideways structure:
There is no possible explanation to the wave structure in formation. Neither short term, nor long term perspective has a clear direction. So EURUSD is better left untouched until there is enough clarity with regard to direction and structure.