EUR/USD: Bulls Looking For Major Trend Reversal

2022.06.03 16:56

EUR/USD Daily Chart

• EUR/USD bulls have a double bottom following the May 23 & 23 bull breakout. It is also a breakout test of the May 5 high, and so far, it is an open gap which increases the odds of a measured move up of the May 5 high and the May 13 low projecting up to the April 21 high.
• One problem for the bulls is that yesterday’s buy signal bar is big, which increases the odds of going sideways (it is forcing traders to buy above the middle of an 8-bar tight trading range.
• Bears are still hopeful the market is forming a lower high with April 21. They will try hard to prevent the market from getting above it. However, that is unlikely.
• The market may have to test a 50% pullback of the May 28 rally and form a higher low major trend reversal before testing the April 21 high.
• Since today is Friday and the weekly chart is important, traders will pay a lot of attention to the open of the week. The weekly chart bar is a doji at the moment, which increases the odds of today closing near the open of the week.

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