EUR/USD: First Reversal Likely to Fail

Published 05/19/2023, 09:22 AM
Updated 07/09/2023, 06:31 AM
EUR/USD
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EUR/USD-Daily Chart

  • The EURUSD is Always In Short and trying to reach the March 24th low.
  • The channel down is tight, increasing the odds that the first reversal down will fail.
  • The bulls need to develop more buying pressure before they have a credible stop-entry buy.
  • At a minimum, the bulls will need a trendline breakout of the tight bear channel that began in May and the formation of a double bottom.
  • The bulls can argue a parabolic wedge bottom with the current bear channel. However, most parabolic wedge bottoms are minor, leading to sideways trading, not a reversal.
  • Overall, the EURUSD will probably have to get down to the March 24th bottom of the channel, even if the market gets a pullback first.

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