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EUR/USD: Minor Reversal After 4 Consecutive Bear Bars

ByAl Brooks
Published 10/11/2022, 09:34 AM
Updated 07/09/2023, 06:31 AM

EUR/USD Daily Chart

  • EUR/USD bears have four consecutive bear bars, which is good. However, the bodies are getting smaller.
  • Bears are testing the September 27 bad buy signal bar, which will likely act as support.
  • The market is in the buy zone; however, after four consecutive bear bars, fewer bulls will be eager to buy, which means the first reversal up will likely be minor.
  • Bulls see this as a higher low major trend reversal and will likely want a micro double bottom before being convinced of higher prices. Otherwise, those bulls will want to see consecutive strong bull bars before looking to buy.
  • Bears will see any rally as a pullback from the four-bar bear micro channel. They expect lower prices and a test of the September low.
  • Overall, the odds favor a second leg up and a test of the October 4 bull breakout bar.

Latest comments

Mali
Mali
The Euro is looking stronger today with surprisingly better numbers out of the Italy and Germany. I also heard that they have cut back on gas consumption by 10% and their stores are at 90% after better than expected deliveries. They are asking for people to cut back 15% which means they won't freeze but it will cost more and 2 plants from Germany's steel maker closed down so the higher energy cost is costing them on their GDP. So on the fundamental side, they might scrape through. So I do expect we will see a relief rally until something gets worse. Got to watch for bank failures etc....
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