Forex analytics and overview
EUR/USD: Bulls Want Major Trend Reversal
2022.06.21 16:56
EUR/USD Daily Chart
- EUR/USD bulls are trying hard to create a successful double-bottom major trend reversal on May 13 and June 15.
- Bulls hope it will lead to a breakout of the June high and a measured move up above the March 31 high.
- Bears see the three-bar breakout down to June 13 as a strong enough bear breakout that will lead to a couple of legs down.
- Breakouts within trading ranges often have deep pullbacks that make traders question if the breakout is still valid, yet the market continues in the direction of the breakout, getting a couple of legs down.
- Overall, there was a big move up to the June high and a big move down to the June 15th low. Remember that big up and big down equals confusion, and confusion is the hallmark of a trading range.
- Bulls want the three-bar bear breakout to ultimately lead to a 2nd leg trap, and the bulls expect a test of the June 9th top of the bear breakout.
- Over the next few days, bears need to stop the bulls from getting more big bull trend bars closing above their midpoints. These bull bars increase the buying pressure, increasing the odds of going sideways.
