- EUR/USD formed a 2nd entry buy yesterday, below the moving average.
- While the three-bar bear breakout that began on Feb. 2 was strong, it was still more likely to convert the market into a trading range, not a bear trend. This means that the odds favored buyers below the moving average.
- The bulls were willing to buy above the moving average for some time. This means that the bulls were happy to pay for more than the market viewed as average. Once the market begins to stall at the moving average, the bull would be more than happy to buy at a fair price.
- The bears know that the bulls were likely to buy at the moving average, and once the market started to stall, those bears began buying back shorts.
- Most traders expect some kind of Lower High Major Trend Reversal to form; without it, they will likely expect the market to go sideways.
- Traders will pay close attention to see what kind of follow-through bulls can get after a reasonable 2nd entry buy below the moving average.
EUR/USD Forms Second Entry Buy Below Moving Average
