- The EUR/USD sold off yesterday as traders began to sell on the test of the February 1st close.
- There were scale-in bulls who bought the February 1st close, and they bought lower. These bulls were likely so disappointed by the pullback to the March low that most of them would be happy to sell out of longs at their original entry.
- The bears knew the bulls would be disappointed, and they also added to yesterday’s selling.
- The bears hope that yesterday is a lower high major trend reversal. However, the channel up from the March low is tight. This will lower the probability for the bears.
- Overall, traders should assume that the market will go mostly sideways.
EUR/USD: Profit Taking at February 1 Close
