- The EUR/USD formed a bull doji yesterday. While yesterday’s bull doji is a bad buy signal bar, it is also a disappointing follow-through for the bears, which will convince some bears to take partial profits below yesterday.
- The Bulls hope they can create a major trend reversal after the August 30th trendline break. However, the bulls’ issue is that the bears are forming a 6-bar bear microchannel. This will increase the odds of any reversal being minor.
- The May 31st low is 60 pips away, and the market may have to reach it before the bulls will come in and begin buying.
- It is possible that the market will get near the May 2022 low and reverse up just above it, making traders question if the May low was adequately tested.
- Overall, traders should be prepared for the bears to take partial profits below yesterday’s low. However, if there is profit taking below yesterday, any reversal up will likely be limited.
EUR/USD Forms Bad Buy Signal Bar: What's Next?
