Al Brooks | Mar 23, 2023 09:27AM ET
- The EUR/USD is Always In Long and currently testing the February 1st close.
- The bears are hopeful that they can form a lower-high major trend reversal. However, the rally from the March 15th low is strong enough that the first reversal down will probably fail.
- This means the bears will likely need to develop more selling pressure before they get any major trend reversal.
- While the rally is strong, it is testing important resistance levels, such as the February 2nd stop entry short low, and is getting near the February 1st close. This will increase the odds of sideways trading soon.
- Yesterday was a climactic bar, increasing the odds of sideways today. The market may sell off to around 50% of yesterday’s range. Even if the market does sell off today, traders need to remember that the market is in a bull trend on the daily chart, which will limit the downside.
- Overall, the market will probably reach the February 2nd close in the next few days.
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Written By:
Al Brooks
