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EUR/USD: Bears Fails To Follow Through On The Daily Chart

Published 08/24/2022, 10:01 AM
Updated 07/09/2023, 06:31 AM
EUR/USD
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USD/EUR
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EUR/USD Daily Chart

  • Yesterday was a bad follow-through bar for the EUR/USD after the August 22 bear breakout below the July 14 low.
  • August 22 was a climactic bar which increased the odds of buyers yesterday as bears to profits and bulls bought yesterday’s open for a scalp.
  • Bears have had a 5-bar bear micro channel within a larger tight channel since August 10.
  • Bears will likely be disappointed soon, and the market will probably get a pullback.
  • While the odds favor the 2nd leg down from the selloff that started on August 10, the market is at major support, the 1.000 considerable round number, and the July 14 low.
  • The market will probably disappoint traders soon and form a deep pullback letting the scale in bulls who bought the July 27 low and lower, get out back at the July 27 low. This makes me think the pullback here will be deep enough to create traders to agree that the market is in a trading range and that the selloff down to August 22 will be a failed breakout.
  • The channel down is tight, so the bulls probably need at least a micro double bottom before traders are willing to buy for a swing. This means the best the bulls can do is sideways here for at least a few bars.

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