EUR/USD: Bulls Getting Second Leg Up
Al Brooks | Nov 15, 2022 09:21AM ET
- EUR/USD bulls got a strong two-bar breakout last Thursday and Friday.
- The market formed a High 1 buy above yesterday’s high and is breaking out to the upside.
- Although this rally is strong, yesterday’s buy signal bar is a bear doji bar, increasing the odds that the upside will be limited before a deeper pullback.
- Bulls hope the market will reach the measured mover up of last Thursday and Friday (purple line). However, the market will probably have a deeper pullback first.
- Bears need to develop more selling pressure before they have a credible short. Currently, the market is Always In Long, and the odds favor higher prices.
- Traders will pay close attention to today. Will the bulls who bought above yesterday’s high 1 buy signal scalp out painting a big tail above, or will the bulls continue to buy into the close, causing today to close on its high.
- So far, today is a good far for the bulls. Even if the market pulls back for a couple of days, the odds will still favor a measured move up and test of 1.0700 (purple line).
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