🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Stocks

EUR/USD: Bear Breakout And Follow Through

Published 09/23/2022, 10:35 AM
Updated 07/09/2023, 06:31 AM
EUR/USD
-
USD/EUR
-

EUR/USD Daily Chart

  • EUR/USD bears got a doji bear close yesterday, which is the minimum follow though needed.
  • At the moment, today is a bear breakout bar and a continuation of the bear breakout from two days ago.
  • Some traders will argue that because yesterday was a doji bar, it is a pullback from the breakout on a smaller time frame; therefore, today might be the second leg down of the breakout.
  • So far, this is good for the bears. However, the bears have an issue: the market is in a broad bear channel, and the bulls are making money at new lows. This increases the odds that the bulls will make money down here.
  • More likely, the bears will take profits soon, and aggressive bulls will begin to buy.
  • Traders want to see the resolve of the bears today. Will, the bears be able to close today’s bar on its low, will today disappoint the bears and be a reversal bar?
  • The market is also at 0.9800, and buyers will be here simply because they see the market at a discount. Those investors will buy simply because it is a value play.
  • Bears selling here hope this bear channel will continue lower. The bears want a successful bear breakout of a bear channel; however only a 25% chance they will be successful.
  • More likely, the daily chart will begin to rally and test prior lower highs soon.
  • Overall, traders will pay attention to today to see if the bulls can get a strong reversal up or if the bears can get a strong close.
  • Today is Friday, so the weekly chart is important. At the moment, the weekly chart is at a low. The bulls want to reverse the market up as much as possible before the close, and the bears want to hold the price down here to get the low close on the weekly chart.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.