EUR/USD: Bear Break Below 2020 Low

2022.04.27 16:26

EUR/USD Daily Chart

• EUR/USD bears have had a series of strong closes on the daily chart and have broken below the 2020 low (1.0636) and want to close below it today.
• The market is clearly Always in Short, and the first reversal up will likely be minor. While the market may have to pullback soon, the odds of a reversal are small without the market going sideways and forming at least a micro double bottom.
• Bears want a measured move down from the March – April trading range, which is around 1.0330. This measured move projection would take the market down to the 2017 low, which is the low of the past 20 years.
• Bulls hope this will be similar to March 7 and reverse back into the March – April trading range. The difference here is the bear bars are stronger than the March 7 sell-off, and the market is trying to break below obvious support (2020 low).
• Overall, the market will likely bounce soon due to profit-taking, and the best the bull can hope for is a minor reversal.

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