- EUR/USD Bulls had a strong breakout on Wednesday that tested the bottom of the 3-month trading range (TR).
- This bull breakout is likely strong enough to keep the market in a trading range and is the potential start of a swing-up back into the 3-month TR.
- The channel down from early February is tight, so the market may have to go sideways and test the bottom of this week and form a double bottom before the market reverses up.
- Bears got a strong bear reversal bar closing on its low yesterday. While that is good for the bears, it follows a surprise bull breakout bar., which means there will probably be buyers somewhere not far below.
- Yesterday’s selloff was a 50% pullback of the 2-day bull rally, so there may be more buyers below yesterday’s low than sellers.
- March 7 was a bear bar that closed around its midpoint, so some bears would have sold the close and looked to sell higher. Those bears are disappointed by the strong reversal up this week that they may look to sell below yesterday and look to exit breakeven on the entire trade around 1.0913, so we may test that price level.
- Overall, the market had a strong selloff last week, followed by a strong reversal up two days ago, and now a strong reverse down yesterday. This increases the odds that the market will go more sideways over the next couple of days.
EUR/USD: Bulls Trying To Reverse Yesterday's Bear Bar
