EUR/USD: Bears Looking to Reach January 6th Low
Al Brooks | Feb 17, 2023 09:31AM ET
- The EUR/USD is breaking out below a 9-day tight trading range, following a strong three-bar breakout. While this is good for the bears, it is getting low in a likely trading range.
- The market will probably bounce soon. However, it may have to get closer to the January 6th low before the market bounces.
- The market will likely need to form a higher lower major trend reversal before the bears can argue that the market is in a bear trend.
- Bulls will try and argue that the daily chart is in a bull trend as long as the market stays above the January 6th high.
- While this is true, the odds are the market is in a trading range and will likely reach the January 6th high, even if the market forms a lower high major trend reversal first.
- Overall, traders should expect a bounce over the next couple of days and more sideways trading.
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