EUR/USD: Bulls Want To Reverse Last Week’s Bear Breakout

2022.05.16 16:57

EUR/USD Daily Chart

• Bulls hope today will be a strong entry bar reversing Thursday’s breakout.
• The EUR/USD had a bear breakout below the 10-bar tight trading range last week. The follow-through so far has been bad, which is a sign of likely exhaustion and that the tight trading range will become a final flag.
• Bears hope that the May 12 bear breakout is strong enough for a second leg down.
• The 2017 low is at 1.0339, which is 80 pips away from the current market price. This is close enough that the market may have to reach it and fall below Friday’s close.
• Bulls that bought about last Friday’s (5/13) bull reversal bar are likely willing to scale in lower.
• Overall, the bulls want a strong entry bar today, and the bears want to reverse Friday’s buy signal bar. The market will likely reach the May 12 high soon.

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