- The EUR/USD formed a bull bar, closing on its high yesterday. However, it is following two consecutive bear bars, with one closing on its low.
- The bears will sell above yesterday’s high and try to get a second leg down and a test of the October low.
- The bulls saw yesterday as the buy signal bar for a higher low major trend reversal. The problem that the bulls have is the pattern for the major trend reversal does not have enough bars.
- It would have been better if the rally to the October high had lasted more bars and had more closes above the moving average.
- Also, the retest (October 13th) of the bottom of the bear channel is only two bars, which is not enough. This will increase the risk of any reversal leading to a trading range, not a bull trend.
EUR/USD: Sellers Lurk Above Yesterday's High
