The EURUSD formed a wedge reversal on the daily chart this week and there was good follow through before stalling at the 20 bar EMA. Although the bulls were not able to keep the breakout gap open, the April 25th sell the close bears are currently trapped. If they remained trapped and prices form a second entry with good follow through it will increase the probability the low will hold. The middle of the trading range at 1.37 is an obvious price to be tested. If instead the wedge fails the bears will try for a measured move down and test of the open bull gap at 1.083.
