EUR/USD’s Breakout Above Feb. Highs Possibly a Failure
- EUR/USD broke above the February high last Thursday. However, the breakout failed and reversed back down.
- The bears see a possible wedge top (March 23rd, April 4th, and April 14th). The bears have a good signal bar for the wedge. However, the last leg up follows three consecutive bull bars, lowering the wedge’s probability.
- If the bears can get 2-3 bear bars closing on their lows, it will be a higher probability for the reversal to go lower.
- The first target for the bears is the April 10th low, which is the bottom of the third leg.
- The bulls saw yesterday as a pullback from the bull breakout above the February high.
- Today is an important bar. The bears nea substantialstrong bear bar closing on its low, and the bulls must prevent a strong close. Ideally, the bulls need to get a reversal bar closing on its high, which would form a breakout pullback buy (High 1 Buy).