EUR/USD bears have nine consecutive bear bars, which is extremely climactic. This means the odds favor a bull close today.
While the nine consecutive bear bars are climactic, this is strong selling by the bears, and traders must be open to a low probability event such as a strong breakout below the March 7 low.
More likely, the bears will soon be disappointed, and the bulls will get a minor reversal up for at least a day or two.
Even if the bulls get a strong signal bar, the channel down is tight, so the first reversal will likely only be minor.
While some bulls may buy this price level (March 7 low), most bulls are better off waiting for a credible stop entry due to the risk of a possible bear breakout here.
Overall, traders should look for buy setups and bull breakouts with follow-through since the odds favor today’s closing above the open. Bulls will also look to fade weak bear selloffs.
It is important not to be in denial if the bears get a strong breakout today. Just because the odds favor a bull close does not mean it is a guaranteed probability today.
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