{"id":200111,"date":"2024-02-11T01:30:00","date_gmt":"2024-02-11T09:30:00","guid":{"rendered":"https:\/\/www.brookstradingcourse.com\/?p=200111"},"modified":"2024-02-13T00:55:36","modified_gmt":"2024-02-13T08:55:36","slug":"eurusd-weak-high-2-setup","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/es\/analysis\/eurusd-weak-high-2-setup\/","title":{"rendered":"EURUSD Weak High 2 Setup"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Market Overview: EURUSD Forex<\/h2>\n\n\n\n<p>The weekly chart formed a EURUSD weak High 2 setup because it is following a tight bear channel. The bulls want a reversal from a double bottom bull flag (Dec 8 and Feb 6). The bears want a retest of the Feb 6 low followed by a breakout below.<\/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\/2024\/02\/EURUSD-Weekly-H2-Setup-but-Tight-Bear-Channel.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/02\/EURUSD-Weekly-H2-Setup-but-Tight-Bear-Channel-680x383.jpg\" alt=\"EURUSD Weekly: H2 Setup but Tight Bear Channel, EURUSD Weak High 2 Setup\" class=\"wp-image-200293\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/02\/EURUSD-Weekly-H2-Setup-but-Tight-Bear-Channel-680x383.jpg 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/02\/EURUSD-Weekly-H2-Setup-but-Tight-Bear-Channel-300x169.jpg 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/02\/EURUSD-Weekly-H2-Setup-but-Tight-Bear-Channel-768x432.jpg 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/02\/EURUSD-Weekly-H2-Setup-but-Tight-Bear-Channel-1536x864.jpg 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/02\/EURUSD-Weekly-H2-Setup-but-Tight-Bear-Channel.jpg 1920w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><\/figure>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\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 doji bar with a long tail below.<\/li>\n\n\n\n<li><a href=\"https:\/\/www.brookstradingcourse.com\/analysis\/eurusd-weak-high-2-setup\/\" target=\"_blank\" rel=\"noreferrer noopener\">Last week<\/a>, we said that the odds slightly favor the market to trade sideways to down and traders will see if the bears can get follow-through selling.<\/li>\n\n\n\n<li>This week traded lower early in the week but reversed most of the move.<\/li>\n\n\n\n<li>The bulls want a retest of the December and July highs followed by a breakout above.<\/li>\n\n\n\n<li>They see the current pullback as minor and want the 20-week EMA or the bull trend line to act as support.<\/li>\n\n\n\n<li>The bulls want a reversal from a double bottom bull flag (Dec 8 and Feb 6). They want to trigger the High 2 bull setup by trading above this week\u2019s high.<\/li>\n\n\n\n<li>The bulls will need to create follow-through buying, trading above the 20-week EMA to increase the odds of the bull leg resuming.<\/li>\n\n\n\n<li>The bears see the rally from October to December as a retest of the prior leg\u2019s extreme high (Jul 18).<\/li>\n\n\n\n<li>They got a reversal from a wedge bear flag (Nov 3, Nov 29, and Dec 28) and a lower high major trend reversal.<\/li>\n\n\n\n<li>They created a tight bear channel closing below the 20-week EMA. They want a retest of the trading range low (Oct 2023 low).<\/li>\n\n\n\n<li>The move down consists of a 7-bar bear microchannel. Odds slightly favor sellers above the first pullback.&nbsp;<\/li>\n\n\n\n<li>Since this week\u2019s candlestick is a doji bar, it is a neutral signal bar for next week.<\/li>\n\n\n\n<li>Because the move down has lasted for a while, we may see a minor pullback (bounce) followed by at least a small second leg sideways to down to retest the current leg extreme (Feb 6) after that.&nbsp;<\/li>\n\n\n\n<li>Traders will see the strength of the pullback (bounce), if any. If it is weak and lacks sustained follow-through buying, the odds of another leg down will increase.<\/li>\n\n\n\n<li>The EURUSD is in a 63-week trading range. (Trading range high: July 2023, Trading range low: Oct 2023).&nbsp;<\/li>\n\n\n\n<li>Traders will continue to BLSH (Buy Low, Sell High) within a trading range until there is a breakout with follow-through selling\/buying.<\/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\/2024\/02\/EURUSD-Daily-DB-Bottom-Bull-Flag-Tight-Bear-Channel.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"680\" height=\"383\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/02\/EURUSD-Daily-DB-Bottom-Bull-Flag-Tight-Bear-Channel-680x383.jpg\" alt=\"EURUSD Daily: DB Bottom Bull Flag, Tight Bear Channel\" class=\"wp-image-200296\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/02\/EURUSD-Daily-DB-Bottom-Bull-Flag-Tight-Bear-Channel-680x383.jpg 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/02\/EURUSD-Daily-DB-Bottom-Bull-Flag-Tight-Bear-Channel-300x169.jpg 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/02\/EURUSD-Daily-DB-Bottom-Bull-Flag-Tight-Bear-Channel-768x432.jpg 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/02\/EURUSD-Daily-DB-Bottom-Bull-Flag-Tight-Bear-Channel-1536x864.jpg 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/02\/EURUSD-Daily-DB-Bottom-Bull-Flag-Tight-Bear-Channel.jpg 1920w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/a><\/figure>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The EURUSD traded sideways for the week. The market traded lower earlier in the week but lacked follow-through selling and reversed most of the move.<\/li>\n\n\n\n<li><a href=\"https:\/\/www.brookstradingcourse.com\/analysis\/eurusd-trading-range\/\" target=\"_blank\" rel=\"noreferrer noopener\">Previously<\/a>, we said that odds slightly favor the current pullback to be minor even if it lasts another couple of weeks. If the bears can create sustained follow-through selling below the 20-day EMA, it could swing the odds in favor of the bear leg beginning.<\/li>\n\n\n\n<li>So far, the bears were able to able to create follow-through selling below the 20-day EMA, albeit not yet very strong (a lot of overlapping price action).<\/li>\n\n\n\n<li>The bears got a reversal down from a wedge pattern (Nov 6, Nov 29, and Dec 28) and a lower high major trend reversal (with the July high).<\/li>\n\n\n\n<li>They see the rally from October simply as a bull leg within a trading range.<\/li>\n\n\n\n<li>They got the third leg down this week testing the December 8 low but lacked follow-through selling.<\/li>\n\n\n\n<li>If the market trades higher, the bears want the EURUSD to stall around the 20-day EMA or the bear trend line area.<\/li>\n\n\n\n<li>They want at least a small second leg sideways to down to retest the February 6 low followed by a breakout below the December 8 low.<\/li>\n\n\n\n<li>The bulls see the pullback as forming a double bottom bull flag (Dec 8 and Feb 6).<\/li>\n\n\n\n<li>They want a reversal from a wedge bull flag (Jan 5, Jan 26, and Feb 6).&nbsp;<\/li>\n\n\n\n<li>They will need to create a few strong bull bars closing far above the 20-day EMA and the bear trend line to increase the odds of the bull leg resuming.<\/li>\n\n\n\n<li>For now, the move down is strong enough to favor at least a small second leg sideways to down after a pullback.<\/li>\n\n\n\n<li>Traders will see if the bulls can create sustained follow-through buying. If the buying remains sideways and weak, the odds of a retest of the February 6 low and a breakout below it will increase.<\/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 weekly chart formed a EURUSD weak High 2 setup because it is following a tight bear channel. The bulls want a reversal from a double bottom bull flag (Dec 8 and Feb 6). The bears want a retest of the Feb 6 low followed by a breakout below. EURUSD Forex [&hellip;]<\/p>\n","protected":false},"author":2836,"featured_media":200293,"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],"class_list":{"0":"post-200111","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":"entry","11":"override","12":"shadow"},"featured_image_src":"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2024\/02\/EURUSD-Weekly-H2-Setup-but-Tight-Bear-Channel.jpg","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\/200111","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=200111"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/200111\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media\/200293"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media?parent=200111"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/categories?post=200111"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/tags?post=200111"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}