- The EUR/USD formed a five-bar microchannel down following the July bull breakout of the May high.
- The recent selloff is probably strong enough to make the market Always In Short; however, a trading range is more likely than a strong reversal down. This means a pullback is likely soon.
- The recent reversal down is likely strong enough to get a second leg down after and pullback.
- The market may have to get down to the July 12th low and test the bottom of the strong bull breakout. This is common when the market is in a trading range.
- Overall, the market will likely get a second leg down. However, the market will probably have to test higher first. This means the market will probably go sideways soon for a few weeks.
EUR/USD: 2nd Leg Down Likely
