- The EUR/USD came within 20 pips of the February 1st close. This is an obvious magnet for the bulls.
- Buying the February 1st close was reasonable since the market was in a bull channel and scaled in lower. Bulls will likely be disappointed by the deep pullback down to the March low, and many bulls will probably be happy to exit around the February high. This will increase the risk of the market going sideways at this price level.
- The channel up from the March low is tight and increase the odds of the market going sideways at this price level.
- The bulls will try to get an upside breakout of the February high over the next few days. The bears will try their best to prevent any upside breakout above the February high from being successful.
EUR/USD Tests Feb. 1 Close
