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EUR/USD: Bear Breakout, First Upward Reversal Should Be A Minor One

ByAl Brooks
Published 09/26/2022, 09:25 AM

EUR/USD Daily Chart

  • Bears did a great job last week getting a breakout below the September low.
  • The past four days are strong enough that the first reversal up will likely be minor and lead sideways to down.
  • The risk the bears have down here is that this is late in a bear trend that will probably end soon. This means that the current selloff might be exhausted and lead to a reversal.
  • Bulls will need a strong bull breakout, or a micro double bottom, before most traders are eager to buy.
  • Traders should expect sideways soon as the bears will likely take profits down here.
  • While this breakout may continue lower, the EUR/USD will likely have to test the September 6 breakout point soon and the resolve of both the bulls and the bears.
  • Lastly, investors see 1.000 as a fundamental price level. They will know any time the market is below 1.000 as a value buy and an excellent opportunity to buy the EURUSD at a cheap price. This makes me think the market will have to get back to 1.000 soon and will have a hard time getting far away from it.
  • Overall, traders expect the bears to become disappointed in a day or two, bears begin to take profits, and aggressive bulls buy for a scalp.

Latest comments

Europe has shot themselves in their head.They are freaking out because the pound has never lost so much value this fast. But it's not even winter yet. And what's worse is that raising rates guarantees that their economy will crash. The only thing that can save Europe is dropping the sanctions on Russia and beg Russia to forgive them for the sanctions that they placed on them. But that's unlikely, so they will crash.
okei
bulls are comming
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