EUR/USD: Bulls Testing April 13 Close

2022.04.20 16:52

EUR/USD Daily Chart

• Bulls are trying to get back to the April 13 stop entry. April 13 was a reasonable stop entry in a trading range. Some bulls who took the stop entry buy bought more below April 13 and will look to exit back around their original entry price. Some traders would be disappointed enough to get out several pips below their first entry, which is one reason why today’s bar has a big tail.
• Yesterday was a second entry buy for the failed breakout below the March 7 low. Some bulls bought the close of yesterday (April 19). Most of the bulls that bought scalped out, and bears sold, which is another reason the market sold off back to the high of April 19.
• Today is a problem for the bears. Although today’s bull bar is currently weak, it will make it difficult for bears to be willing to stay short, betting on a successful bear breakout below the March 7 low.
• The odds are that the EUR/USD will test back to the middle of the March – April range and ultimately reach the March high. Traders still do not know if this is the start of the test of the March high or if the market has to go sideways first.  

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