{"id":179212,"date":"2023-05-28T01:30:00","date_gmt":"2023-05-28T08:30:00","guid":{"rendered":"https:\/\/www.brookstradingcourse.com\/?p=179212"},"modified":"2023-05-27T22:18:47","modified_gmt":"2023-05-28T05:18:47","slug":"eurusd-tight-bear-channel","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/es\/analysis\/eurusd-tight-bear-channel\/","title":{"rendered":"EURUSD Tight Bear Channel"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Market Overview: EURUSD Forex<\/h2>\n\n\n\n<p>The\u00a0<strong>EURUSD\u00a0<\/strong>Forex formed a EURUSD tight bear channel closing below the 20-week exponential moving average (EMA). The bears want follow-through selling next week. If they get that, it increases the odds of a deeper pullback beginning. The bulls want the 20-week EMA to act as support and hope the market will reverse back above the 20-week EMA.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">EURUSD Forex market <\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">The <em>Weekly<\/em> EURUSD chart<\/h3>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/05\/EURUSD-Weekly-Close-Below-20-Week-EMA-Higher-Low.png\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/05\/EURUSD-Weekly-Close-Below-20-Week-EMA-Higher-Low-680x383.png\" alt=\"EURUSD Tight Bear Channel, Close Below 20-Week EMA, Higher Low on Weekly Chart?\" class=\"wp-image-179373\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/05\/EURUSD-Weekly-Close-Below-20-Week-EMA-Higher-Low-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/05\/EURUSD-Weekly-Close-Below-20-Week-EMA-Higher-Low-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/05\/EURUSD-Weekly-Close-Below-20-Week-EMA-Higher-Low-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/05\/EURUSD-Weekly-Close-Below-20-Week-EMA-Higher-Low-1536x864.png 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/05\/EURUSD-Weekly-Close-Below-20-Week-EMA-Higher-Low.png 1920w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li>This week\u2019s candlestick on the&nbsp;<a href=\"https:\/\/www.investing.com\/currencies\/eur-usd\" target=\"_blank\" rel=\"noreferrer noopener\">weekly EURUSD Forex chart<\/a>&nbsp;was a bear bar with a small tail below.<\/li>\n\n\n\n<li>Last week, we said that the odds slightly favor a small second leg sideways to down after a pullback.<\/li>\n\n\n\n<li>This week closed below the 20-week EMA (exponential moving average).<\/li>\n\n\n\n<li>The bears got a reversal down from a higher high major trend reversal and failed breakout above the February 2 high.<\/li>\n\n\n\n<li>They got the third consecutive bear bar, and they now have a 4-bar bear micro channel. They want a retest of the March 15 low.<\/li>\n\n\n\n<li>The bears will need to create follow-through selling breaking far below the 20-week EMA to convince traders that a reversal down could be underway.<\/li>\n\n\n\n<li>If there is a pullback, the bears want at least a small second leg sideways to down testing the current leg low (May 26).<\/li>\n\n\n\n<li>The bulls got breakouts above the February 2 high in April and May; 3 times (a wedge \u2013 Apr 14, Apr 26, and May 3) but did not get sustained follow-through buying.<\/li>\n\n\n\n<li>When the market does something a few times and fails, it will often then do the opposite. The EURUSD stalled and has started the pullback phase.<\/li>\n\n\n\n<li>The bulls hope to get at least a retest of the April high after the current pullback.<\/li>\n\n\n\n<li>They want the 20-week EMA to act as support. They hope the EURUSD will reverse back above the 20-week EMA next week.<\/li>\n\n\n\n<li>If the EURUSD trades much lower, they want a reversal up from a double bottom bull flag with the March low.\u00a0<\/li>\n\n\n\n<li>The current selloff is in a tight bear channel. The bulls will need a strong reversal bar or a micro double bottom before they would be willing to buy aggressively.<\/li>\n\n\n\n<li>Since this week was a bear bar closing near the low, it is a sell signal bar for next week.&nbsp;<\/li>\n\n\n\n<li>Traders want to see if the bears can get a follow-through bear bar following this week\u2019s close below the 20-week EMA.<\/li>\n\n\n\n<li>Or will the EURUSD form a minor pullback (bounce) and reverse back above the 20-week EMA?<\/li>\n\n\n\n<li>For now, odds slightly favor a small second leg sideways to down after a small pullback.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">The <em>Daily<\/em> EURUSD chart<\/h3>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/05\/EURUSD-Daily-Tight-Bear-Channel-Parabolic-Wedge.png\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/05\/EURUSD-Daily-Tight-Bear-Channel-Parabolic-Wedge-680x383.png\" alt=\"EURUSD Daily: Tight Bear Channel, Parabolic Wedge?\" class=\"wp-image-179376\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/05\/EURUSD-Daily-Tight-Bear-Channel-Parabolic-Wedge-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/05\/EURUSD-Daily-Tight-Bear-Channel-Parabolic-Wedge-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/05\/EURUSD-Daily-Tight-Bear-Channel-Parabolic-Wedge-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/05\/EURUSD-Daily-Tight-Bear-Channel-Parabolic-Wedge-1536x864.png 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/05\/EURUSD-Daily-Tight-Bear-Channel-Parabolic-Wedge.png 1920w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The EURUSD pulled back slightly earlier in the week and then formed another leg lower for the rest of the week. Friday was an outside bull doji.<\/li>\n\n\n\n<li>Last week, we said that odds slightly favor at least a small second leg sideways to down after a slightly larger pullback.<\/li>\n\n\n\n<li>This week continued the tight bear channel down in a parabolic wedge (May 15, May 19, and May 26).<\/li>\n\n\n\n<li>The bears got a reversal down from a higher high major trend reversal (with Feb high), a wedge (Mar 23, April 4, and April 14) and a micro wedge (April 14, April 26, and May 3).<\/li>\n\n\n\n<li>The move down is in a tight bear channel. That means persistent bears.<\/li>\n\n\n\n<li>Traders expect at least a small second leg sideways to down after a larger pullback.&nbsp;<\/li>\n\n\n\n<li>They expect at least TBTL (Ten Bars, Two Legs) in the pullback phase. The pullback currently consists of 15 bars (candlesticks).<\/li>\n\n\n\n<li>The bulls hope the pullback will form a higher low.&nbsp;<\/li>\n\n\n\n<li>They want another strong leg up completing the wedge pattern with the first two legs being February 2 and April 26.<\/li>\n\n\n\n<li>At the very least, they want a small leg retesting the prior leg extreme high (April 26) after the pullback.<\/li>\n\n\n\n<li>They want a reversal up from a parabolic wedge (May 15, May 19, and May 26).<\/li>\n\n\n\n<li>If the EURUSD trades much lower, they want a reversal up from a larger double bottom bull flag with the March low.<\/li>\n\n\n\n<li>While the tight channel down means strong bears, the selloff is also slightly climactic.<\/li>\n\n\n\n<li>There may be a minor pullback followed by a second leg sideways to down retesting the current leg low (May 26).<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Market analysis reports archive<\/h3>\n\n\n\n<p>You can access all weekend reports on the <a rel=\"noreferrer noopener\" class=\"rank-math-link\" href=\"https:\/\/www.brookstradingcourse.com\/blog\/analysis\/\" target=\"_blank\">Market Analysis<\/a> page.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n","protected":false},"excerpt":{"rendered":"<p>Market Overview: EURUSD Forex The\u00a0EURUSD\u00a0Forex formed a EURUSD tight bear channel closing below the 20-week exponential moving average (EMA). The bears want follow-through selling next week. If they get that, it increases the odds of a deeper pullback beginning. The bulls want the 20-week EMA to act as support and hope the market will reverse [&hellip;]<\/p>\n","protected":false},"author":2836,"featured_media":179373,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"shadow","_genesis_layout":"","footnotes":""},"categories":[1842,136],"tags":[281,1910],"class_list":{"0":"post-179212","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-forex","8":"category-analysis","9":"tag-eurusd-forex","10":"tag-tight-bear-channel","11":"entry","12":"override","13":"shadow"},"featured_image_src":"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2023\/05\/EURUSD-Weekly-Close-Below-20-Week-EMA-Higher-Low.png","author_info":{"display_name":"Andrew","author_link":"https:\/\/www.brookstradingcourse.com\/es\/author\/andrewa\/"},"_links":{"self":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/179212","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/users\/2836"}],"replies":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/comments?post=179212"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/179212\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media\/179373"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media?parent=179212"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/categories?post=179212"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/tags?post=179212"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}