- The EUR/USD is Always In Short, following the bear breakout that ended on May 12th.
- the follow-through selling is strong enough that the first reversal up will probably be minor. This means the best the bulls can get is sideways until they can develop more buying pressure.
- The market will probably test the March 24th low (green low). This was the start of the bull channel that ended on May 5th.
- The bears want a strong breakout below March 24th; however, since the market is in a trading range, they will likely become disappointed soon.
- It’s possible the selloff from May 4th is a small pullback bear trend that breaks far below the March 24th low and reaches the lows of the year.
- The bulls want a double bottom with any prior higher lows in the bull channel that began on March 24th. However, the bulls will need to develop more buying pressure before traders are convinced the bulls have a credible shot at taking control. At a minimum, the bulls will need a micro double bottom. Otherwise, traders will expect any reversal to be minor.
EUR/USD Tests March 24 High
