EUR/USD: Strong Bull Breakout
Al Brooks | Oct 05, 2022 09:26AM ET
- EUR/USD bulls have gotten a strong reversal back to the 1.000 big round number.
- So far, this is good for the bulls, and the odds favor a second leg up and test of the September high.
- While the market is probably Always in long, it is possible that this is just a buy vacuum test of the most recent trading range, which is the final flag (blue box), and the market will go sideways here.
- At the moment, the odds favor higher prices, meaning the bulls will buy, and buy lower.
- Bears see this as a buy vacuum test of the September 20 high. They want the market to stall here and get a second entry short in the form of a micro double top.
- Bulls were able to close the breakout gap below the September 6 low. The gap closing increases the odds of the selloff to the September low being exhaustion. This means the minimum target for the bulls is the September 20 high.
- Overall, traders should expect the first reversal down to fail and the market to get a second leg up.
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