EUR/USD: Odds Favor Bulls Forming Trading Range Above September Highs
2022.10.13 10:54
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– The bulls are still trying to get the reversal up. However, yesterday was a bad second-entry buy.
– The odds still favor a second leg up and a test of the Oct. 4 close. The buy-the-close bulls (Oct. 4) never had a chance to exit at break-even after the disappointment bar (Oct. 5).
– Also, the odds favor the bulls forming a trading range and going above the September highs ending the bear trend on the daily chart.
– The bears have been in a bear channel since the middle of 2021. Channels eventually evolve into trading ranges, meaning the bulls should get a rally up to the last major lower high.
– The bears have a tight bear channel from the Oct. 5 selloff, making bulls less willing to buy without more buying pressure developing. The bears hope the rally will lead to a lower high below Oct. 5 and a selloff below the September low.
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