EUR/USD: Strong Bull Breakout With Follow-Through

EUR/USD
+0.06%

Add to/Remove from Watchlist

Add to Watchlist

Add Position

Position added successfully to:

Please name your holdings portfolio

Type:

BUY
SELL

Date:

Amount:

Price

Point Value:

Leverage:

1:1
1:10
1:25
1:50
1:100
1:200
1:400
1:500
1:1000

Commission:

Create New Watchlist
Create

Create a new holdings portfolio
Add
Create

+ Add another position
Close

EUR/USD Daily Chart

• The EUR/USD last week had a strong breakout with follow-through last Thursday and Friday.
• Friday closed back at the 2017 low, a sight of strength by the bulls.
• Last week’s breakout and follow-through are strong enough to lead to a second leg up. The bears are trapped in a losing trade. They will likely use any pullback to buy back shorts. The bulls are trapped out of a winning trade and will use any pullback to find a way to get long.
• While the bears hope this rally is a buy vacuum test of resistance, such as the 2017 low, the momentum up is strong enough that most traders will not be interested in selling until there has been at least a couple of legs up.
• Bears want today to close near its low, reversing most of Friday’s strong bull close. More likely, any selloff today will be seen as profit-taking, and today will not be a big bear bar closing on its low.
• Last Thursday and Friday are climactic enough that the market may have to go sideways for a few days to relieve the bulls.
• Overall, the EUR/USD has been in a broad bear channel on the daily chart for over 18 months. The odds favor the bear channel converting into a trading range, which is what is happening right now.

Source