Forex analytics and overview

EUR/USD: Bulls Going For Double Bottom

2022.04.08 16:52

EUR/USD: Bulls Going For Double BottomEUR/USD Daily Chart

  • Today the EUR/USD reached the March 7 close. Bulls hope there will be buyers at this price level (bears buying back shorts, bulls buying to get long), and there likely will be.
  • Bulls have a problem: there are six consecutive bear bars on the daily chart, so even if the bulls get a strong bull close today, it will probably lead to a minor reversal at best. The bulls will need a micro double bottom before getting a reversal up.
  • Bears hope that the six consecutive bear bars will be enough to entice bears to stay short and bet on a breakout below March 7.
  • More likely, the market will go sideways here, and the bulls fight for a double bottom, and the bears fight for a breakout below March 7.
  • When the market is in a trading range, things are common not to look right. For example, the bears did a great job getting four consecutive bear bars, with three closing on their lows on April 5; however, instead of racing down to the March 7 low, the market hesitated at important support.
  • Bulls are trying to bottom at important support. However, they have the problem of too many bear bars, which will make traders hesitate and potentially wait to buy a second entry.
  • Overall, traders should expect a bounce on the daily chart for a day or two. The market has six consecutive bear bars, which means the odds favor a bull close today. The bulls will probably only be able to get a minor reversal and need a second entry to buy to get a credible bottom. 
  • Another thing to note is that the March 30 bull close was a reasonable buy, and it never let those buy-the-close traders out. This means the March 30 close will be a magnet, and the market will likely have to get back to the March 30 close, even if it takes two weeks.

Source

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 82,669.15 0.58%
ethereum
Ethereum (ETH) $ 1,893.97 0.61%
tether
Tether (USDT) $ 1.00 0.01%
xrp
XRP (XRP) $ 2.31 3.25%
bnb
BNB (BNB) $ 578.77 0.04%
solana
Solana (SOL) $ 125.53 0.03%
usd-coin
USDC (USDC) $ 1.00 0.00%
cardano
Cardano (ADA) $ 0.720012 0.35%
dogecoin
Dogecoin (DOGE) $ 0.169413 0.63%
tron
TRON (TRX) $ 0.222337 0.91%
staked-ether
Lido Staked Ether (STETH) $ 1,892.05 0.53%
pi-network
Pi Network (PI) $ 1.57 8.76%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 82,517.11 0.63%
leo-token
LEO Token (LEO) $ 9.75 0.37%
chainlink
Chainlink (LINK) $ 13.91 5.19%
stellar
Stellar (XLM) $ 0.279184 5.02%
usds
USDS (USDS) $ 1.00 0.06%
wrapped-steth
Wrapped stETH (WSTETH) $ 2,268.56 0.59%
hedera-hashgraph
Hedera (HBAR) $ 0.191298 2.12%
avalanche-2
Avalanche (AVAX) $ 18.83 0.39%
shiba-inu
Shiba Inu (SHIB) $ 0.000013 2.27%
sui
Sui (SUI) $ 2.21 2.19%
the-open-network
Toncoin (TON) $ 2.82 3.00%
litecoin
Litecoin (LTC) $ 89.87 0.61%
bitcoin-cash
Bitcoin Cash (BCH) $ 331.72 0.63%
polkadot
Polkadot (DOT) $ 4.07 2.36%
mantra-dao
MANTRA (OM) $ 6.24 3.08%
ethena-usde
Ethena USDe (USDE) $ 0.99993 0.00%
weth
WETH (WETH) $ 1,893.42 0.60%
bitget-token
Bitget Token (BGB) $ 4.30 2.84%
binance-bridged-usdt-bnb-smart-chain
Binance Bridged USDT (BNB Smart Chain) (BSC-USD) $ 0.997229 0.01%
hyperliquid
Hyperliquid (HYPE) $ 13.64 9.33%
whitebit
WhiteBIT Coin (WBT) $ 28.20 1.21%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,011.31 0.48%
monero
Monero (XMR) $ 208.93 0.57%
uniswap
Uniswap (UNI) $ 5.91 0.64%
susds
sUSDS (SUSDS) $ 1.04 0.14%
near
NEAR Protocol (NEAR) $ 2.67 3.75%
dai
Dai (DAI) $ 1.00 0.02%
aptos
Aptos (APT) $ 5.19 0.95%
pepe
Pepe (PEPE) $ 0.000007 1.91%
ethereum-classic
Ethereum Classic (ETC) $ 18.31 3.21%
ondo-finance
Ondo (ONDO) $ 0.852264 0.30%
internet-computer
Internet Computer (ICP) $ 5.59 1.71%
okb
OKB (OKB) $ 42.09 0.09%
gatechain-token
Gate (GT) $ 20.47 0.90%
coinbase-wrapped-btc
Coinbase Wrapped BTC (CBBTC) $ 82,699.16 0.55%
aave
Aave (AAVE) $ 166.30 3.56%
mantle
Mantle (MNT) $ 0.724733 3.27%
official-trump
Official Trump (TRUMP) $ 11.75 9.23%