EUR/USD: Bulls Looking For Strong Entry Bar For Double Bottom
Al Brooks | Jul 01, 2022 09:25AM ET
- EUR/USD bulls got a strong reversal bar following the June 13 bear close test and the June 15 low.
- Yesterday was also the third reversal up from the 2017 low since May, which increases the probability of the market getting a rally here.
- Bulls see yesterday as a signal bar for a higher low double bottom major trend reversal with June 15.
- Bulls hope that the market will break above the neckline (June 27 high) and get a measured move up to 1.0871, which is about the June high.
- Bears want the opposite and a breakout below the 2017 low. While it is possible, even if the market does fall below the 2017 low, there will probably be buyers, and the market will create a failed breakout of a double bottom.
- bears can still argue the market is in a bear trend. The bulls need to get above the June major lower high, making the market either a trading range or a bull trend.
- Overall, the bulls have an excellent-looking signal bar (June 30). The bulls need to trigger the buy and have a strong close today, creating a solid entry bar for the higher low double bottom. Bulls hope today will look like May 27, a bull trend bar closing on its high.
- Today is Friday, so the weekly chart is important.
- Bulls want the market to close above last week’s low of 1.0469. Next, bulls would wish to close above the midpoint of the current week (1.0502).
- Bears want the opposite of the bulls and for this week to close below last week’s low and create as small a tail below this week’s bar as possible.
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