- The EUR/USD is testing the July 6th Signal bar high. The breakout above the July 6th high was strong. This increases the odds that the signal bar high (July 6th) will act as support.
- The bears hope to continue down the tight bear channel. However, it will probably bounce soon and disappoint the Bears.
- The channel down from the July high has several overlapping bars. This increases the odds that the selloff will soon convert into a trading range.
- The channel down is tight, which increases the odds that the first reversal up will fail.
- Overall, traders should expect the daily chart to go sideways and disappoint the bears after their recent selloff.
EUR/USD Bears Hope to Continue Lower
