- The EUR/USD broke below the July 6th low today and is 29 pips below it.
- The bears hope they can get today to close far below the July 6th low, increasing the odds of lower prices.
- The bulls will see a bear breakout below a bear channel today. They will expect the market to reverse up within a few bars. The problem with this argument is that the channel down is tight, which lowers the probability of bulls buying.
- There is a possible negative gap between the August 3rd low and the August 22nd high, which may lead to a measured move down.
- It is possible the market has to get down to the June 1st low before buyers come in.
- Right now, traders will pay attention to the close of today. The bears are hopeful it will close on its low, which would signify traders selling into the bar’s close.
- The bulls want the opposite and are hopeful that it forms a tail below the bar today and forms a close near its midpoint.
- This would signify profit taking into the close and a lack of urgency to sell.
EUR/USD Bears Hope for Another Close Below July 6 Low
