The EUR/USD formed a wedge top on March 31, which was a bear bar closing on its low.
The entry bar on April 1 was a bear bar. Although it was a small bear bar, it is still a bear bar which is good for the bears.
So far, today has broken below April 1’s low. The bears want the market to reach the March 28 low, the bottom of the most recent bull leg.
Bulls want this selloff to be another higher low in the bull channel.
Traders need to be open to the market having to test down to the March 28 low or the March 14 low and form a double bottom higher low major trend reversal.
While the market may reach the March low, the odds are that any test of the March low will find buyers.
The odds still favor an upside bull breakout. The problem is that traders do not know the path of the bull breakout. Will the market reverse up within a few days and get the upside breakout, or will the market have to test lower such as one of the March higher lows or even the March low.
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