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EUR/USD: Bulls Going For Upside Breakout

Published 05/05/2022, 09:22 AM
Updated 07/09/2023, 06:31 AM

EUR/USD Daily Chart

  • EUR/USD bulls got a strong bull breakout following the FOMC report yesterday, which created a big bull bar on the daily chart.
  • Bulls went above the 2020 low and found sellers. These sellers are more likely bulls taking profits than bears selling aggressively.
  • Right now, the bears have a possible second entry short below today’s bar (assuming it closes on its low). The problem the bears have is the rally since April 28 has been in a tight trading range that is also a bull micro channel.
  • Another problem the bears have is that yesterday May 4, was a surprise bar, so that the odds may favor a second leg up. If the market does get a second leg, it could be 1-2 bars or several).
  • Bulls have a reasonable chance at getting a bull breakout of the bear flag (April 28 – May 5) and a measured move up, which would project up to 1.0812 and the high of April 25. This measured move projection would also reach the bottom of the March – April trading range, which is a magnet.
  • Bears want a second leg down from the six consecutive bear bars that started on April 21.
  • Overall, bulls have done an excellent job of making the market go sideways. However, they need to do more to convince traders that the market is going higher.

Latest comments

Huge bullish divergence 1,2 on EU daily. I have been accumulating small buys on the 4hr support sets. 1.17 overall structure retest target with an 80% target at 1.09-1.10 with expectations of 1.05 again to confirm support.
where is the author🤣🤣🤣 i wanna burn his paper!
Kathy Lien you are more than wellcome. Be back please! We miss you!
Shut up please!
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