- The EUR/USD Bulls tried to get a reversal up over the past two days. However, the channel down is tight. This increased the probability or more sideways to down.
- The bears want to get down to the March 24th low, the bottom of the bull channel that rallied up to the May high.
- If everyone agrees that the market will have to reach it (March 24th), it could get a sell vacuum test of the support level.
- Bulls want to create support and form a double bottom with the Mach 24th low. The likelihood the bulls have with the argument of the double bottom is that the bear channel is tight. This increases the probability that the first reversal down will fail.
- Overall, traders should expect more sideways to down and a test of the March 24th low. The bulls need to create more buying pressure, such as a micro double bottom, if they will get a reversal up.
EUR/USD Likely to Reach March 24 Low
