- EUR/USD bears had a big bear bar yesterday, closing on its low and reversing most of May 17.
- So far, today has almost reversed all of yesterday’s strong bear trend bar and will likely break above it.
- As strong as yesterday’s bear trend bar, the context is not great. While it was at the moving average, it followed three consecutive bull trend bars and a credible reversal up from a possible final flag setup. The odds were there would be a second leg up from the 3-bar rally up to May 17, so yesterday was more likely a breakout pullback buy setup.
- Ultimately, the bulls need to break above the moving average and close above it to convince traders that this is the start of the rally up to the May 5 high and the bottom of the March – April trading range.
EUR/USD: Bulls Trying To Break Above Moving Average
