EUR/USD: Odds Favor Bulls Forming Trading Range Above September Highs

10/13/2022

1 minute read

2022.10.13 10:54

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Al Brooks

EUR/USD Daily Chart.

– The bulls are still trying to get the reversal up. However, yesterday was a bad second-entry buy.

– The odds still favor a second leg up and a test of the Oct. 4 close. The buy-the-close bulls (Oct. 4) never had a chance to exit at break-even after the disappointment bar (Oct. 5).

– Also, the odds favor the bulls forming a trading range and going above the September highs ending the bear trend on the daily chart.

– The bears have been in a bear channel since the middle of 2021. Channels eventually evolve into trading ranges, meaning the bulls should get a rally up to the last major lower high.

– The bears have a tight bear channel from the Oct. 5 selloff, making bulls less willing to buy without more buying pressure developing. The bears hope the rally will lead to a lower high below Oct. 5 and a selloff below the September low.

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