EUR/USD: Minor Bull Reversal Likely
Al Brooks | May 22, 2023 09:30AM ET
- The EURUSD is trying to reverse up. However, any bull reversal is likely to be minor. The bear channel down from the May high is tight, which increases the odds of sellers above and a 2nd leg down.
- The bulls want to test the March 24th bottom of the bull channel.
- Since the market is in a trading range, traders must be mindful of a potential deep pullback from the May low.
- Trading ranges often form tight bear channels that get deeper pullbacks than what seems reasonable.
- The bulls see a parabolic wedge bottom over the past 12 bars and want a strong reversal up.
- Overall, traders should expect both the bulls and the bears to become disappointed and for the market to go sideways.
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