- EUR/USD bears are trying hard to disappoint the bulls. So far, the bears have a second entry short (which is a double top) after a test of the 3-month trading range low.
- Today’s potential second entry short is following four consecutive bull bars, which lowers the probability for the bears; however, if today is a bear bar closing on its low, it will be a credible short.
- Bears hope this will lead to a test of the March low and possibly a bear breakout below the March range and a test of the 2020 price area. Traders should assume that if today closes on its low, the bears will have at least a 40% chance of testing the bottom half of the March range.
- If the market sells off, the bulls will hope that this will lead to a test of the March 14 higher low and form a double bottom higher low major trend reversal. This would be a more credible buy setup and increase the chances of testing back into the 3-month trading range.
EUR/USD: Bears Trying To Form Double Top
