- The EUR/USD is continuing to go lower in a tight bear channel. The bears want to test the May 31st low, and at the moment, the market will probably get there.
- It is possible that the market will get near it and rally, forming a higher low above it. Next, traders would question if the May 31st Low was adequately tested.
- The bears hope to get a strong bear breakout below the May 31st low. The bears will likely be disappointed by the breakout below the May 31st low, and the market will find buyers below if the market reaches it.
- Price is getting far from the moving average and forming a 7-bar bear microchannel. This is a sign of climactic behavior, which will probably limit the downside. This means the market may have to rally for a few days before reaching the May 31st low.
- Overall, due to the climactic behavior, the market is deciding to test the May 31st low before it reaches or if the market will have to rally first.
EUR/USD: Bears Seek Test of May 31 Lows
