- The {{EUR/USD}} formed a Low 1 short on September 19th. The context was bad for the bears, and the odds favored buyers below for at least a scalp.
- The bulls and bears both sold above the September 19th high, and yesterday’s selloff went outside down.
- Because the bears have a tight bear channel on the daily chart, it is reasonable for bulls to sell out of longs below the September 20th low.
- The swing traders would consider selling below the September 20th low, hoping for a surprise breakout below the May 31st low.
- Traders will pay close attention to see what kind of follow-through selling the bears will bet below the September 20th low.
- If traders detect hesitation by the bulls, more traders will begin to buy, leading to a reversal.
EUR/USD Bears Breakout Below May 31st Low
