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EUR/USD: Parabolic Wedge Bottom

By Al BrooksCurrenciesMay 30, 2023 09:20AM ET
www.investing.com/analysis/eurusd-parabolic-wedge-bottom-200638540
EUR/USD: Parabolic Wedge Bottom
By Al Brooks   |  May 30, 2023 09:20AM ET
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EUR/USD
-0.09%
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EUR/USD Daily Chart
EUR/USD Daily Chart

  • The EUR/USD is forming a parabolic wedge bottom (purple line) after testing the March 24th low.
  • The bulls want a strong reversal up; however, as I have said several times, the selloff from the May high is tight. This increases the odds that the first reversal up will be minor.
  • It is reasonable for the bears to exit above today’s bar due to the risk of the pullback being deeper than what the bulls would want to hold through.
  • The market has been in a tight bear channel within a trading range for several bars. Even though the bear channel is tight, traders cannot be in denial if the bulls start to get 2-3 consecutive strong bull closes. Even if the bulls get strong closes, the odds favor more sideways trading.
EUR/USD: Parabolic Wedge Bottom
 

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EUR/USD: Parabolic Wedge Bottom

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Comments (4)
Abruu Khokhar
Abruu Khokhar May 31, 2023 3:43AM ET
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hassan ibrahim
hassan ibrahim May 31, 2023 3:21AM ET
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1.05 area a potential bottom?
ZABRON ERNEST
PipsMaker2023 May 30, 2023 10:49AM ET
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Thank you sir
CEO Brandz Plus
CEO Brandz Plus May 30, 2023 10:17AM ET
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I agree with your expectations
 
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