EUR/USD: Buyers Waiting Below
Al Brooks | Mar 17, 2023 09:33AM ET
- The EUR/USD daily chart had a strong bear outside a bar two days ago. While it was a surprise bar, it followed a 5-bar bull micro channel, increasing the probability of buyers below.
- Bull that bought the March 14th low got trapped, and today’s bars are testing its low.
- Most of the bulls that bought the March 14th low did not expect the selloff to fall below the March 8th low. This means there are probably sellers at the March 14th low.
- Bears want a 2nd leg down after the March 15th outside down. Most bulls hesitate to buy above March 16th because traders expect the first reversal to fail.
- If the bears get a 2nd leg down, they need signs of strength. Otherwise, today will probably form a bad Low 1 short, and the bulls will buy below it. This would create a 2nd entry buy and a possible bottom.
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