- The EUR/USD broke above the moving average (blue line) two days ago. While the odds favor the bulls getting a second leg up, the bears were able to form a strong bear reversal bar yesterday.
- Yesterday’s bear reversal is strong enough that the bears will probably get at least a small second leg down. This means that if today is a bull bar, there will likely be sellers above it, except at least a small second leg down.
- The bulls will try their best today to prevent the bears from getting follow-through selling below yesterday’s big bear bar.
- While the bulls did a good job getting a breakout above the moving average, it was a bull breakout within a trading range. This increased the risk of the bulls getting a deep pullback before they get a second leg up.
EUR/USD: Bears Setting up Bull Trap
