EUR/USD: Bear Breakout, 2nd Leg Down Likely
Al Brooks | Jan 02, 2024 09:35AM ET
- The EUR/USD bulls are selling out of longs, and the bears are establishing short positions.
- Today’s downside breakout is strong enough for a second leg down.
- The bears are hopeful that today will close on its low and tomorrow will form a follow-through bar closing on its low.
- The bulls are hopeful that today’s selloff is a sell vacuum test of the moving average. However, because the market is in a trading range, the selloff could reach the December 8th low before there is enough buying pressure to drive the market up.
- Overall, today’s selloff is strong enough for the odds to favor a second leg down, especially if today closes on its low.
- The swing bulls will probably wait to see what kind of follow-through selling the bears are able to create before they are interested in buying.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.