👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

EUR/USD: Bulls Want Upside Breakout From Bear Flag

Published 10/20/2022, 09:22 AM
Updated 07/09/2023, 06:31 AM
EUR/USD
-

EUR/USD Daily Chart

  • The EUR/USD has been forming a triangle since the late September bear breakout.
  • Bears are trying to form a bear flag (October 18th) following the 4-bar bear micro channel ending on October 10th.
  • Bulls want an upside breakout of the bear flag (purple dashed lines) and a measured move up.
  • The odds still favor a second leg up following the October 4th rally. Although October 4th rally was a buy vacuum test of the apex of the trading range (August 15th – September 15th), it was a strong enough buy-the-close bar that traders would expect a second leg up.
  • These bulls never had a chance to exit breakeven back at the October 4th close after the disappointment bar (October 5th), increasing the odds that the market will have to return to the October 4th close.
  • Overall, the bears, have been in a broad bear channel since the middle of 2021, and the odds favor the bear channel evolving into trading. This means that odds favor a bull rally lasting a couple of months and the market going above a major lower high such as the September or August high.

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.