EUR/USD Bulls Looking For Double Bottom

EUR/USD
-0.04%

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EUR/USD Daily Chart

• Bulls have created a strong rally over the past two trading days. The two-bar bull breakout is strong enough to expect a second leg up, so traders will likely buy the first pullback.
• Bears want to create a strong reversal bar today or tomorrow and trap the eager bulls betting on the breakout. They want the breakout to form a double top with October 27, break below the November 3 neckline of the double top, and go down for a measured move.
• Bulls want the opposite and a breakout above the October 26 high and rally for a measured move up, testing the August high.
• Overall, the odds favor a rally lasting at least a few months. The bears have had a bear channel on the daily chart for over a year and a half. Bear channels typically convert into trading ranges, which means a rally lasting several bars, and a couple of legs will be needed at a minimum to convert the market into a trading range.

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