- The EUR/USD formed a possible second leg down following last week’s bull trap.
- The Bears did a good job getting follow-through selling yesterday. However, today will likely disappoint the bears by forming a bull bar or a weak doji.
- It is possible that the recent selloff over the past few days is a sell vacuum test of the May 31st low.
- The Bulls hope they can form a double bottom with the May 31st low. To accomplish this, the bulls will need to form more buying pressure. At a minimum, the bulls need to form a micro double bottom.
- The bulls are hopeful that they will be able to get back to the August 30th high, which is the top of the Bull Trap. While the bulls will probably return to this price level, most traders will want to see more buying pressure before they are convinced the market will reach the August 30th close.
EUR/USD: Second Leg Down After Surprise Breakout
