- The EUR/USD bulls are selling out of longs, and the bears are establishing short positions.
- Today’s downside breakout is strong enough for a second leg down.
- The bears are hopeful that today will close on its low and tomorrow will form a follow-through bar closing on its low.
- The bulls are hopeful that today’s selloff is a sell vacuum test of the moving average. However, because the market is in a trading range, the selloff could reach the December 8th low before there is enough buying pressure to drive the market up.
- Overall, today’s selloff is strong enough for the odds to favor a second leg down, especially if today closes on its low.
- The swing bulls will probably wait to see what kind of follow-through selling the bears are able to create before they are interested in buying.
EUR/USD: Bear Breakout, 2nd Leg Down Likely
