Curso de Trading de Brooks

Aprenda a operar con la acción del precio de forma consistente

 

More results...

EURUSD Bulls Need Strong Follow-through Buying

By

Market Overview: EURUSD Forex

The EURUSD bulls need strong follow-through buying trading above the July 24 and July 1 highs to increase the odds of a resumption of the trend. The bears want a reversal from a lower high major trend reversal or a double top bear flag (Jul 24 and Sept 9).

EURUSD Forex market

The Weekly EURUSD chart

EURUSD Weekly - Bulls Need FT Buying, Tight Trading Range, EURUSD Bulls Need Strong Follow-through Buying
  • This week’s candlestick on the weekly EURUSD Forex chart was a bull doji closing slightly above the middle of its range with prominent tails.
  • Last week, we said traders would observe if the bulls could create a strong breakout above the tight trading range, followed by a breakout above the July 1 high, or if the market would continue to stall around the July 24 high area instead.
  • The market traded slightly higher but hasn’t yet traded above the July 24 high.
  • The bears want the upper third of the multi-year trading range, or the May 2021 high, to act as a resistance area. They want the move to form a lower high (vs Jan 2021).
  • They see the current move (Sept 9) as a retest of the prior trend’s extreme high (Jul 1).
  • They want a reversal from a lower high major trend reversal or a double top bear flag (Jul 24 and Sept 9).
  • If the market trades higher, they want it to form a double top with the July 1 high.
  • They must create strong consecutive bear bars breaking below the tight trading range and the 20-week EMA to show they are back in control.
  • The bulls want another leg up to form the larger wedge pattern, with the first two legs being April 21 and July 1 highs.
  • They want a measured move (based on the height of the trading range), which will take the market to the 2021 high area.
  • They hope the recent pullback (Aug 1) has alleviated the prior overbought condition.
  • They want a resumption of the trend from a double bottom bull flag (Jul 17 and Aug 1) and a wedge bull flag (Jul 17, Aug 1, and Aug 27).
  • The bulls need to create strong follow-through buying trading above the July 24 and July 1 highs to increase the odds of a resumption of the trend.
  • The market has been in a tight trading range in the last 9 trading days.
  • Traders view the current move as a retest of the prior high (Jul 1) but still lacking strong follow-through buying (overlapping candlesticks), indicating that the bulls are not yet as strong as they hoped.
  • For now, traders will see if the bulls can create more follow-through buying and a breakout above the July 1 high.
  • Or will the market continue to stall around the July 24 high area instead? If this condition persists for an extended period, traders will conclude that the bulls aren’t able to push higher, which will increase the likelihood of selling pressure returning.

The Daily EURUSD chart

EURUSD Daily - Bulls Need FT Buying, Tight Trading Range
  • The market traded slightly higher on Tuesday but reversed into a bear bar. Thursday tested the 20-day EMA but reversed into a bull bar, closing near its high.
  • Previously, we said traders would observe if the bulls could create more follow-through buying, breaking above the tight trading range, or if the market would continue to stall below the July 24 high.
  • So far, the market is trading in a tight trading range and above the 20-day EMA, but still below the July 24 high over the past few weeks.
  • The bears view the current move as a retest of the prior high (Jul 1), forming a double top bear flag (Jul 24 and Sept 9) and a smaller wedge bear flag (Aug 13, Aug 22, and Sept 9).
  • They want a reversal from a lower high major trend reversal.
  • They want the July 24 or July 1 highs to act as resistance areas.
  • They must create strong consecutive bear bars breaking below the 5-week tight trading range and the 20-day EMA to show they are back in control.
  • The bulls want a measured move (based on the height of the trading range), which will take the market to the 2021 high area.
  • They see the recent move (Aug 1) as a two-legged pullback and hope that it has alleviated the prior overbought condition.
  • They want another leg up to form the larger wedge pattern, with the first two legs being April 21 and July 1 highs.
  • They need to create a strong breakout above the 5-week tight trading range accompanied by strong follow-through buying to increase the odds of another leg up.
  • They want the 20-day EMA to act as a support area.
  • So far, the market is forming a retest of the July 1 high, but the move is contained within a tight trading range with a slight slope up. The bulls are not yet strong.
  • For now, traders will see if the bulls can create more follow-through buying, breaking above the July 24 and July 1 high.
  • Or will the market continue to stall below the July 24 high instead? If this condition persists for an extended period, it will increase the likelihood of selling pressure returning in the weeks ahead.

Market analysis reports archive

You can access all weekend reports on the Market Analysis page.

>