- The EUR/USD formed a Low 1 sell setup yesterday. However, there are likely buyers below.
- Most Low 1 sell setups have buyers below, which leads to deeper pullbacks. This is because the context for the Low 1 short is often bad, leading to buying below the Low 1.
- The context of the EUR/USD favors higher prices and a test of the September 14th high after the consecutive sell climaxes down to the May 31st low.
- It was reasonable for the Always In Bear to exit above the September 18th high due to the probability of seeing a two-legged rally to the moving average.
- If a bear got out above the September 18th high, it likely would not sell again below the Low 1 on the very next bar.
- The bears want today to be a strong entry bar below yesterday’s Low 1. This would potentially trap the bulls who bought below the Low 1 and trap the bears out of a potentially good trade. The bulls who buy below the Low 1 will probably make money and not get trapped.
EUR/USD: Buyers Lurk Below Low 1
