ks
- Bears got a strong bear breakout below the bear channel last Friday and follow-through yesterday.
- Right now, bears have an 11-bar bear microchannel.
- While the EUR/USD will probably get a bounce here or in the next day or two, the bears will probably get a second leg down after any rally.
- Bears got a follow-through bar closing below its midpoint yesterday, which increases the odds that the bears will have to go lower or form a micro double bottom before bulls will be willing to buy for a swing.
- Bears also have a measured move target based on the 3-month TR and double top at 1.0760. Yesterday tested it within 40 pips, which means the market will probably have to get closer to the measured move target.
- The next target for the bears is the 2020 Lows around 1.0640. While the market probably will not get there, it is certainly possible that it does reach it.
- Bulls need to develop more buying pressure and need a strong breakout to the upside followed by a retest of this price level (which would be a major trend reversal) before there will likely be a credible swing.
- Today will probably have a bull close. The bulls need a strong bull bar to reverse yesterday’s follow-through bar. However, even if today closes on its high, any bounce will probably be minor and lead to sideways.
