Small bear body yesterday. It is a weak Low 1 sell signal bar, especially after two bull bars and a sell climax.
– Many bears will wait for a second leg up before selling again after a sell climax.
– Is the selloff a bear trap? After such a strong selloff, most bulls will want at least a micro double bottom before concluding that the bear breakout is failing.
– With many bulls and bears waiting for second signals, the EUR/USD might have to go sideways for at least a couple more days.
– Tomorrow is the last day of the week.
– Bulls want the week to close near its high to increase the chance of higher prices next week.
– Bears want the week to close below the mid-point of the week to increase the chance of sideways to down trading next week.
