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

EUR/USD: Likely Breakout Below July 14 Low

ByAl Brooks
Published 08/23/2022, 10:32 AM
Updated 07/09/2023, 06:31 AM
EUR/USD
-
USD/EUR
-

EUR/USD Daily Chart

  • EUR/USD bears have had a strong selloff over the past week, testing the 1.000 big round number and the July 14 low.
  • Yesterday closed below the July 14 low and was a big bear bar closing near its low. While this is good for the bears, the problem with yesterday’s bar is that it is climactic and may lead to sideways trading over the next few trading days.
  • Take a look at August 15th; while it was not as climactic as yesterday’s bar, it was still a sell climax that led to two days of sideways trading. This makes me think today and tomorrow will disappoint the bears.
  • So far, the bears are doing a good job of showing signs of strength. The bears hope that this is a strong enough bear breakout below the July 14 neckline to lead to a measured move down. While this is possible, it is not likely.
  • At the moment, the selling pressure is good for the bears, and the first reversal will likely fail. This means that while the market is at support, the bulls probably do not want to buy here unless the market can form some micro double bottom first.
  • While the odds eventually favor the market getting back to the middle of the June – July trading range, this selloff down to the July 14 low is a problem for the bulls. The selloff is stronger than what traders expected and increases the odds of being more sideways.
  • The first reversal is likely minor, so the best the bulls can hope for is sideways until they can develop more selling pressure.

Latest comments

Loading next article…
Install Our App
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.