EUR/USD: Bull Surprise Indicates 2nd Leg Is Likely
EUR/USD: Bull Surprise Indicates 2nd Leg Is Likely
Published at:
EUR/USD
+0.13%
Add to/Remove from Watchlist
Add to Watchlist
Add Position
Position added successfully to:
EUR/USD Daily Chart
The EUR/USD formed a Bull breakout last week that reversed down, trapping the bears.
Every breakout is a surprise, and surprises usually get 2nd legs. However, instead of the bulls getting a second leg up, they got trapped by the consecutive bear trend bars last week.
The downside breakout trapped the bulls, meaning traders will expect a second leg down and the first reversal up to fail.
At the time of writing this, the bears are trying to get a downside breakout and a test of the May 31st low.
The bulls will try to create a failed breakout below the August low. Next, the bulls want a reversal back to the August 30th close.
Today, it will be important to see if the bears are determined enough to get a strong bear close or if the bears will take profits early today, creating a big tail below the bar.
Overall, the bears are hopeful that the August 30th rally will act as a double top that leads to a measured move down. While this is possible, the bears need a strong breakout below the August 25th neckline of the double top before traders will conclude there is a high probability of a measured move down.
Tags
LEGAL: This website is operated by Promax Trading Limited Registration No: LL18424 | NFA: 0563058
Registered Address: Lot No. 20, Level 1, Lazenda Commercial Center Phase 3, Jalan OKK Abdullah, 87000 Federal Territory of Labuan, Malaysia Operational Address: Office No 648, 6th Floor, Business Village, Block A Dubai, UAE Contact : +971-428-51729
Risk Warning:Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. There is a possibility that you may sustain a loss of some or all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Regional Restrictions: We do not offer our services to residents of certain jurisdictions such as Canada, China, Federal Territory Labuan Malaysia, Romania, Singapore, the United States and to jurisdictions on the FATF and EU/UN sanctions list.