EUR/USD: Bulls Forming Micro Double Bottom Testing 2020 Low

2022.05.03 16:56

EUR/USD Daily Chart

• The EUR/USD is forming a micro double bottom that will likely reach the 2020 low today or tomorrow due to the scale in bulls who bought the 2020 low and lower. Bears know this, so they most likely scalped out below the 2020 low.
• Ultimately, the market will likely have to return to the March – April trading range low (1.0757), making it a final flag reversal.
• The market will also likely reach the April 21 high (1.0936) since the April 21 selloff has been the most substantial selloff since the bear trend began in 2021. This means that the April 21 selloff is likely exhaustion.
• Bulls will likely need to make the market go sideways for several bars before they can form a credible bottom. This means that the best the bulls can expect here is sideways around the 2021 low until the bulls develop more buying pressure or get a strong bull breakout with follow-through.
• Bears hope that any reversal up here will be minor and lead to a minor reversal and more down, possibly to the 2017 low.

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