- The EUR/USD is beginning to hold below the moving average (blue line), a sign of strength by the bears.
- The odds still favor a rally and the formation of a lower major high trend reversal soon.
- Bull channels typically convert into trading ranges and not opposite trends.
- This means the odds favor a deeper pullback than what the bears want and the formation of a lower high major trend reversal.
- This means that a bear trend is unlikely with the formation of a major trend reversal.
- It is possible that the market has to go lower first. However, the downside will likely be limited and be bought.
- Overall, the odds favor a rally and a couple of legs up over the next 5-10 trading days.
EUR/USD: Bulls Try to Hold Below Moving Average
