EUR/USD bears have had a series of strong closes on the daily chart and have broken below the 2020 low (1.0636) and want to close below it today.
The market is clearly Always in Short, and the first reversal up will likely be minor. While the market may have to pullback soon, the odds of a reversal are small without the market going sideways and forming at least a micro double bottom.
Bears want a measured move down from the March – April trading range, which is around 1.0330. This measured move projection would take the market down to the 2017 low, which is the low of the past 20 years.
Bulls hope this will be similar to March 7 and reverse back into the March – April trading range. The difference here is the bear bars are stronger than the March 7 sell-off, and the market is trying to break below obvious support (2020 low).
Overall, the market will likely bounce soon due to profit-taking, and the best the bull can hope for is a minor reversal.
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