- Bears are trying once again to break below the January lows on the EUR/USD.
- Right now, it looks like a possible endless pullback after a strong bull breakout back in early February.
- While the selloff from February to today is probably a bear leg in a trading range, traders have to question why the channel is so tight. Bears have a 9 bar bear microchannel, which is a sign of strength.
- Bulls had a chance for a bottom on February 28 and failed to trigger.
- The market is in a trading range, and the odds favor a test of the February high. Traders have to realize that the odds of a bear breakout and follow-through are very real.
- Bears need to get a strong breakout here to convince traders that we are going lower and possibly a measured move down from the three-month trading range to test the 2020 lows.
- Even if bears get a bear breakout, the odds will favor this 3-month trading range being a final flag.
- It is possible that the market has to reach bottom of bear channel (around 1.1000) before reversing up.
- Overall, traders will look for a micro double bottom before looking to buy. That would be a second failed breakout below the January low.
EUR/USD: Traders Should Look For Micro Double Bottom Before Buying
