EUR/USD: Bulls May Exit Below
Al Brooks | Dec 06, 2022 01:29PM ET
- The EUR/USD is forming a wedge top after the November 10 and 11 bull breakout.
- Bears want two legs down at a minimum. Next, the bears want a downside breakout below the November 21 low.
- Yesterday is a bear bar closing on its low and a possible third push-up, which is good for the bears. This increases the odds that bulls may exit below. The problem for the bears is that yesterday’s bear signal bar is part of a four-bar bear micro channel which will lower the probability for the bears and increase the odds of a second leg up.
- Overall, traders will pay close attention to today. Bulls may buy above if today is a strong High 1 buy signal bar. However, if today is a weak high 1, such as a doji bar or a strong entry bar for the bears, that will increase the odds of the market staying below yesterday’s high for a few bars.
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