- EUR/USD bulls triggered yesterday’s buy signal bar, and so far, today is a decent entry bar for the bulls.
- Bulls hope that today is the start of trend resumption up and that the market will break above the May 31 high and reach the April 21 high.
- Bears hope that any breakout above the tight trading range that began on May 24 will lead to a final flag reversal and test back down.
- If the market goes above May 31 soon, the market may try to form a wedge top (May 5 and May 31). If the bears do get the wedge top, they would see it as a double top with the April 21 high.
- Bears want to prevent the market from getting above the April 21 high because it is a major lower high. As long as the market is below the April 21 high, the bears can argue that the market is still in a bear trend.
- One problem the bears have with the wedge top argument is that the bears were unable to close the gap from the May 5 high to the May 25 low. The bears should have gotten a close below the May 5 high to demonstrate strength but failed.
- A measured move from May 13 low to the May 5 high (measuring gap) projects up to the April 21 high, increasing the odds that the market will have to reach it.
- Overall, bears will try hard to prevent the bulls from getting a strong entry bar today, and the bulls want to create a big bull trend bar. If the bulls can get a decent entry bar today, they will try for another bull trend bar tomorrow.
EUR/USD: Bulls Trying To Reach April 21 High
