EUR/USD Likely to Reach March 24 Low
Al Brooks | May 23, 2023 09:33AM ET
- The EUR/USD Bulls tried to get a reversal up over the past two days. However, the channel down is tight. This increased the probability or more sideways to down.
- The bears want to get down to the March 24th low, the bottom of the bull channel that rallied up to the May high.
- If everyone agrees that the market will have to reach it (March 24th), it could get a sell vacuum test of the support level.
- Bulls want to create support and form a double bottom with the Mach 24th low. The likelihood the bulls have with the argument of the double bottom is that the bear channel is tight. This increases the probability that the first reversal down will fail.
- Overall, traders should expect more sideways to down and a test of the March 24th low. The bulls need to create more buying pressure, such as a micro double bottom, if they will get a reversal up.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.