EUR/USD: Bears Want Double Top, Test July Low
Al Brooks | Jul 28, 2022 09:23AM ET
- EUR/USD bears are currently trying to reverse yesterday’s bull breakout. The bears want a breakout below yesterday’s low which would be the neckline of a double top. They hope this will lead to a measured move down and test of the July 14 low.
- I mentioned in a prior blog post that the market might have to retest the 1.0000 big round number before reaching the 2017 low. The market may be trying to do that right now.
- Even if the market falls below the July 14 low, the odds favor a double bottom and test of the 2017 low.
- Bears need to get a strong close on its low and not allow a tail below the bar. This would entice more bears to sell.
- More likely, today will be disappointing for the bears and bulls, and the market will continue sideways. Some sell-the-close bears sold at the close of July 26th; some will be disappointed enough to buy back shorts during today’s selloff testing the July 26 close.
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