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EUR/USD Bears Likely to Be Disappointed

Published 02/27/2023, 09:48 AM
Updated 07/09/2023, 06:31 AM
EUR/USD
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EUR/USD Daily Chart

  • The EUR/USD is in a small pullback bear trend. However, it will likely be a bear leg in a trading range.
  • The first target for the bears is the Jan. 6 low, which will likely get tested sometime this week.
  • The daily chart is likely forming a trading range which means the bears will likely get disappointed by the pullback soon.
  • It is common for legs in trading ranges to appear strong and like they will break out of the range just before the market reverses and the trading range continues.
  • The daily chart is also getting near the 1.050 price level, where the weekly chart traders will begin to buy, betting on a higher-lower major trend reversal.
  • It is important to remember that 1.050 is just the minimum price level, and the market can go much lower and still form a successful higher-low major trend reversal on the weekly chart.
  • Overall, traders should expect a bounce soon and for the bears to become disappointed.

 

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