EUR/USD: Bears Disappointed By Continued Trading Rage
Al Brooks | Aug 17, 2022 09:55AM ET
- EUR/USD bears had two consecutive bear bars closing below their midpoints recently. However, the follow-through after Monday’s bear breakout was a bull doji which was disappointing for the bears.
- While the bears will likely get at least a small second leg sideways to down, the odds are the bears will be disappointed soon and reminded that the market is still in a trading range.
- Bulls want the selloff over the past few days to be a test of the July 27th low and form a double bottom higher low major trend reversal.
- Bears want the opposite and for the market to break far below the July 27th neckline, and get a measured move down the month-long trading range that breaks below the July low.
- It is possible that the market needs to reach the 1.0000 big round number one more time before the market will rally.
- The odds are the market will go sideways to up over the next couple of months, so while the bear breakout may be far below the 1.0000 big round number, it is not likely.
- Bulls have a reasonable chance at forming a double bottom and getting some kind of measured move up, testing the middle of the June – July trading range at a minimum.
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