EUR/USD: Bulls Want Breakout Above Neckline Of Double Bottom

2022.05.04 16:42

EUR/USD Daily Chart

• The EUR/USD has been in a 4-bar tight trading range.
• Bulls have a micro double bottom and want a breakout above the neckline of the April 29 and a measured move up, which would be above the 2020 low.
• At the moment, the odds favor a rally and a close above the 2020 low.
• The sell the close bears who sold the April 28 close are likely disappointed and are likely trying to buy back shorts here. This increases the odds of an upside breakout.
• Ultimately, the April 21 selloff will likely be exhausted, and the market will trade back into the March—April trading range.
• While the odds favor higher prices and a test of the 2020 low, the bulls need 2-3 consecutive bull closes or a strong bull breakout with follow-through to make the market clearly always in long.
• The market is at the open of the week 1.0810, and this will likely continue to be an important price level all week. The weekly chart may close above the open, which would be bad follow-through for the bears after last week’s bear breakout bar.
• Overall, the odds favor higher prices, but the market may only go sideways to up without more signs of bull strength.

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