EUR/USD: Market Testing Parity Yet Again

EUR/USD
+0.54%

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EUR/USD Daily Chart

• The EUR/USD had a strong reversal on Friday, testing the 1.000 big round number.
• Bulls are trying to get follow-through testing the October 26 to buy the close bar. They want the rally-up that test on October 26 to be strong and convince traders to buy more at the October 26 (purple line) price level.
• Bulls ultimately want an upside breakout of the October 26 close and rally up to the July and September high.
• Bears will see any rally that tests the October 26 close as a double top and will try their best to form a second reversal down. Next, the bears will want a test back down to the November 3 close and, ultimately, a test of the September low.
• Overall, the daily chart has been in a bull channel since the middle of 2021. Bear channels should be considered bull flags, meaning the bulls should get a rally lasting several months on the daily chart to convert the market into a trading range. The bulls have formed a trading range on the daily chart, but the broad range will likely need to be at least 500 pips higher.

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