Curso de Trading do Brooks

Aprenda a operar price action consistentemente

 

More results...

Limited Follow-Through Selling on the EURUSD Monthly Chart

By

Market Overview: EURUSD Forex

There was limited follow-through selling on the EURUSD monthly chart in November. Bulls want the August low to act as support, forming a double bottom bull flag (Aug 1 and Nov 5). Bears see November as a pullback and hope to get at least a small second leg sideways to down.

EURUSD Forex market

The Monthly EURUSD Forex chart

EURUSD Monthly - Limited FT Selling, Double Bottom Bull Flag, Limited Follow-Through Selling on the EURUSD Monthly Chart
  • The November EURUSD monthly candlestick was a bull bar closing in its upper half with prominent tails.
  • Last month, we said the wedge top and loss of momentum increased the odds of a pullback that may have begun in October. Traders would watch whether bears could create strong follow-through selling, or if the pullback would remain weak and sideways as it has been through most of 2025.
  • The market traded below October’s low, but the follow-through selling was limited.
  • Bulls see the current move as a pullback in a bull trend. They want the pullback to be weak and sideways — overlapping bars, long tails below, and poor follow-through selling.
  • They need to create a strong bull entry bar closing near its high in December to increase the odds of the bull trend resuming.
  • They want the August low to act as support, forming a double bottom bull flag (Aug 1 and Nov 5).
  • If the pullback extends lower, they want the 20-month EMA to hold as support.
  • Bears see the September 17 rally as a bull leg in a multi-year trading range and a buy vacuum test of resistance.
  • They want the rally to form a major lower high relative to the January 2021 high. So far, this remains the case.
  • They see the bear trend line and the upper third of the multi-year trading range as resistance areas.
  • They want a reversal from a wedge top (April 21, July 1, and September 17).
  • Bears see November as a pullback and hope to get at least a small second leg sideways to down.
  • They will need consecutive strong bear bars breaking below the August low to show they are in control.
  • If the market trades higher, they want it to stall below the September 17 high, forming a lower-high major trend reversal.
  • The buying pressure since the January low has been stronger (tight bull channel) than the selling pressure (bear bars with no follow-through).
  • The wedge top and loss of momentum increase the odds of a minor pullback that likely began in October.
  • Traders will watch whether the bears can create more bear bars, or if the pullback remains weak and sideways as it has been through most of 2025.
  • Otherwise, traders will see the overlapping candlesticks simply as a pullback and a bull flag, followed by a retest of the September high in the months ahead.
  • For now, traders will watch whether the bulls can create a strong bull entry bar in December. If they do, the yearly candlestick will close near its high, increasing the odds of EURUSD trading at least a little higher in 2026.
  • Or will the bears be able to create a retest of the November 5 low or the August low instead?
  • For now, the pullback (Nov 5) appears to be minor.

The Weekly EURUSD chart

EURUSD Weekly - Retest Nov 5 Low, Bulls Need FT Buying
  • This week’s EURUSD candlestick was an inside bull bar closing near its high and above the 20-week EMA.
  • Last week, we said traders would watch whether bears could create follow-through selling (and break below the November 5 low), or if the market would stall around the November 5 low area and then reverse above the 20-week EMA in the weeks ahead.
  • Bulls see the recent move (Nov 5) as a pullback within a broader bull trend.
  • They want the pullback (Nov 21) to form a higher low or a small double bottom. So far, this is the case.
  • They want the 20-week EMA and the November low area to act as support, forming a large double bottom bull flag (Aug 1 and Nov 5) and a wedge bull flag (Sep 25, Oct 9, Nov 5).
  • Next week, bulls need a strong bull entry bar breaking far above the 20-day EMA and the bear trendline to increase the odds of resuming the bull trend.
  • Bears want the upper third of the multi-year trading range to act as resistance, creating a lower high relative to January 2021 — which remains the case so far.
  • They are looking for a reversal from a higher-high major trend reversal (Sep 17) and a wedge top (Apr 21, Jul 1, Sep 17).
  • However, the move down (Nov 5) had overlapping bars, indicating the bears are still not very strong.
  • If the market trades higher, they want it to stall below the September 17 high, forming a lower-high major trend reversal.
  • Bears need strong consecutive bear bars trading far below the 20-week EMA to show they are in control.
  • The market has been in a 24-week trading range.
  • Traders may continue to Buy Low, Sell High within the range — buying near the lower third and selling near the upper third — until a clear breakout with strong follow-through appears.
  • Traders will watch whether the bulls can create a strong bull entry bar closing far above the 20-day EMA and the bear trendline, or if the bears can create a retest of the November 5 low instead.
  • The move from the September 17 high to the November 5 low looks like a bear leg within the trading range.
  • For now, the odds slightly favor the November 5 pullback being minor.

Market analysis reports archive

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

>