EUR/USD: Bears Testing 2017 Low
Al Brooks | Jun 30, 2022 10:26AM ET
- The EUR/USD had a strong bear breakout bar closing near its low yesterday.
- At the moment, today is also a bear bar closing on its low, and it looks like the market will test the 2017 low.
- Bulls did an excellent job of making the pullback from the June 13 bear breakout last many bars. However, the market never went clearly always in long.
- While the bears may get a successful breakout of the June 15 low and 2017 low (blue line), the market will likely fail around those price levels and reverse up.
- Since the 2017 low is such an important price level and the market came within 20 pips of it back on June 15, the market will likely have to reach it during the current selloff. In other words, the market will probably need to fall below it to see if there are buyers or sellers.
- Although the odds favor a failed breakout of the 2017 low, the market could easily fall 50-100 pips below the 2017 low before reversing back up.
- Over the next few days, traders will pay close attention to the test of the 2017 low and June 15 low.
- If today is a big bull reversal bar, some traders will buy, but most bulls would not want to buy after the last two bear bars closing near their lows.
- This makes me think the market will go sideways for a couple of days.
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