EUR/USD: Bears Going For Second Leg Down
Al Brooks | Sep 20, 2022 09:46AM ET
- EUR/USD bears have done an excellent job getting four consecutive bull bars. However, they are all dojis with small bodies. This increases the odds that the bears will get their second leg down from the September 13 breakout.
- Traders will pay close attention today to gauge how strong the second leg down will be.
- If today is a big bear trend bar, it will increase the odds of follow-through tomorrow. Even if today is a bear trend bar closing on its low, it will likely have disappointing follow-through for the bears and lead to more sideways trading.
- With the four consecutive bull bars increase, the odds that this second leg down will be brief and likely get bought.
- Overall, traders should expect limited downside and a sideways to up rally testing the August high soon.
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