EUR/USD: Bears Break Below 2017 Low
Al Brooks | Jul 05, 2022 10:04AM ET
- The EUR/USD broke below the 2017 low during the overnight session.
- This is a bear breakout of the past two months.
- Bears want a successful bear breakout and measured move down from the June 27th high to the June 15th bear flag low (1.0103).
- Next, the bears want a measured move down off the two-month range, which would project to under 1.0000.
- The odds are the current bear breakout below the two-month range will be a final flag, and bulls will buy soon.
- Bears need the current bar to close near its low, and they will also need follow-through tomorrow.
- More likely, today will close with a tail below the bar, which would be disappointing for the bears.
- Right now, the odds favor the bulls; however, if today and tomorrow are big bear bars closing on their lows, that would increase the odds of some measured move down.
- So far, the current bar is part of a 7-bar bear micro channel, so the bulls may need a second entry to buy before getting the reversal up.
- The first target for the bulls is the June 27 high, and the next will be the June 9th high.
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