EUR/USD: Minor Reversal After 4 Consecutive Bear Bars
Al Brooks | Oct 11, 2022 09:34AM ET
- EUR/USD bears have four consecutive bear bars, which is good. However, the bodies are getting smaller.
- Bears are testing the September 27 bad buy signal bar, which will likely act as support.
- The market is in the buy zone; however, after four consecutive bear bars, fewer bulls will be eager to buy, which means the first reversal up will likely be minor.
- Bulls see this as a higher low major trend reversal and will likely want a micro double bottom before being convinced of higher prices. Otherwise, those bulls will want to see consecutive strong bull bars before looking to buy.
- Bears will see any rally as a pullback from the four-bar bear micro channel. They expect lower prices and a test of the September low.
- Overall, the odds favor a second leg up and a test of the October 4 bull breakout bar.
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