EUR/USD: Bulls Looking For Strong Entry Bar; Double Bottom In Sight

2022.04.14 16:47

EUR/USD Daily Chart

• The EUR/USD ended the nine consecutive bear bars on the daily chart by getting a bull close yesterday.
• Bulls now have a double bottom with March 7 and a second entry buy setup. This is a credible swing buy, and bulls will buy, betting on a low of the next couple weeks and a test back up to the march high.
• The channel down from March 31 is tight, so the odds favor more sideways than up.
• Bears hope that they can get a Low 2 (second entry short) at this price level and that the bears can successfully get a surprise bear breakout below the March 7 low.
• Bulls need a strong bull close today, which would create a strong entry bar for yesterday’s bull signal bar. More likely, we are in a trading range, and the bull entry bar will be disappointing.
• If bulls can get 2-3 strong bull bars closing on their highs, the market would be always in long, and the odds are it will test the March high and possibly get a measured move up of the March range, which would project above the February 2022 high.

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