Investing.com - Financial Markets Worldwide
🎁 💸 Warren Buffett's Top Picks Are Up +49.1%. Copy Them to Your Watchlist – For FreeCopy Portfolio

EUR/USD Approaches Trend Reversal Target

ByAl Brooks
Published 02/23/2023, 10:00 AM
Updated 07/09/2023, 06:31 AM
EUR/USD
-

EUR/USD Daily Chart

  • The EUR/USD is getting near the Higher Low Major Trend Reversal (HL MTR on the chart) target on the weekly chart. This target (1.0500) is important because the rally from October 2022 is the first major trendline break of the tight bear channel on the weekly that began in mid-2021.
  • In general, higher low or lower high major trend reversals need at least a 30% pullback to make the higher low credible enough for a major trend reversal. The market does not have to stop at 1.0500. This price level is a minimum level bulls will want to see before buying.
  • The January 6th low is another important price level that will likely be tested on the daily chart. If the bears can get below it, they can argue that the market is in a bear trend or a trading range. As long as the market is above the January 6th major higher low, traders can argue that the daily chart is still in a bull trend.  
  • The bears want to continue the tight channel that began after the February 6th bear breakout.
  • The odds are that the first reversal up will be minor and lead to sideways trading. This means the bulls need to do something to undo the damage caused by the bears.
  • The problem the bears have with the selloff over the past 12 bars is that the limit order bulls are making money below bars.  If limit order traders are making money, eventually stop order bulls will begin to make money.
  • Since the bears can argue that the market is in a tight bear channel, they want to get a downside breakout and trap the bulls scaling into longs building up a position. The bulls want an upside breakout and a test back to 1.080, which is most likely.

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.