The EUR/USD closed below the 2020 Lows (green line) yesterday, and they want another bear close today.
More likely, today will have a close above the open (1.0560) and try and test the 20202 low (1.0636) either today or tomorrow.
It was reasonable to buy the 2020 low and scale in lower, which means the market could rally back to it quickly.
Overall, the breakout below the March – April trading range has been strong, which means the first reversal up will likely be minor, and the best the bulls can expect is sideways until they get a micro double bottom.
One thing to point out is that the current selloff (April 21 – 28) on the daily chart is the strongest-looking selloff since April 2021. The market may go sideways and form a bottom around this price level over the next couple of weeks and rally back to the March – April trading range.
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