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Feb 23, 2021, 4:51 PM GMT

The EURUSD Torn Between Bears and Bulls

The EURUSD is currently in the process of establishing a Distribution range, as postulated by the Wyckoff cycle theory. What this implies is that the pair is transitioning from the established bullish trend into a new possible downtrend, a process that could take up to several weeks to complete. Nevertheless, the situation looks different in the shorter-term following a recent bullish rebound.

While the current week looks quite an uneventful one judging by the economic calendar, the expectations for robust durable goods orders in the U.S. scheduled for publication on Thursday could reinvigorate the greenback in the short-term. Consequently, EURUSD's temporary bullish momentum is about to be tested in several days.

This week's comparatively uneventful economic schedule is suitable for a transition from trending to a ranging market, like the one outlined above. It follows that while the EURUSD pair looks poised to continue climbing in the immediate future, the bulls do not have many reasons to anticipate trend continuation. Quite the contrary, the overall sentiment seems prevailingly bearish-oriented.

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