- The EURUSD is Always In Short and trying to reach the March 24th low.
- The channel down is tight, increasing the odds that the first reversal down will fail.
- The bulls need to develop more buying pressure before they have a credible stop-entry buy.
- At a minimum, the bulls will need a trendline breakout of the tight bear channel that began in May and the formation of a double bottom.
- The bulls can argue a parabolic wedge bottom with the current bear channel. However, most parabolic wedge bottoms are minor, leading to sideways trading, not a reversal.
- Overall, the EURUSD will probably have to get down to the March 24th bottom of the channel, even if the market gets a pullback first.
EUR/USD: First Reversal Likely to Fail
