EUR/USD: After Bear Breakout, Bulls Want Double Bottom At May 13 Low

2022.06.16 16:56

EUR/USD Daily Chart

• The market got close to the May 13 low yesterday. EUR/USD bulls want a double bottom with May 13 and a test back to the June high. The bears want a successful breakout below the May 13 low and a measured move down to around 1.000.
• At the moment, the odds are the market will have to reach the 2017 low, which is at 1.0339. This means the market will most likely fall below the May 13 low.
• While the market may get a successful breakout below the May 13 low and 2017 low, it is more likely that the bulls will form a bottom and stay within the 2-month trading range.
• Bears got a strong surprise three-bar breakout on June 13; however, it is within a trading range, which lowers the probability for the bears.
• The longer the market goes sideways following this bear breakout (June 13), the increased risk this bear breakout is a 2nd leg trap.

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