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EUR/USD: Bears Seek Reversal

Published 04/03/2023, 09:24 AM
Updated 07/09/2023, 06:31 AM
EUR/USD
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EUR/USD Daily Chart

  • The EUR/USD sold off on Friday and tried to form a double top lower high major trend reversal on March 23rd.
  • However, the channel up from the March low is tight, lowering the probability that the major trend reversal is successful.
  • It is important to remember that most major trend reversals are really minor reversals that lead to more sideways trading.
  • The bulls want the market to reach the February 1st close, and the market will probably have to get there soon.
  • Overall, traders will pay close attention to see how this bar forms. If today is a bull bar closing on its high, that will increase the number of traders willing to buy above the bar.
  • The bears want today to form a weak reversal bar, and they will try their best to keep the market from going above last Friday’s buy signal bar.

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