EURUSD Forex market <\/h2>\n\n\n\nThe Weekly<\/em> EURUSD chart<\/h3>\n\n\n\n![\"EURUSD](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/05\/EURUSD-Weekly-Bear-Breakout-Test-2017-Low-680x383.png\" "\\"\\"")
<\/a><\/figure>\n\n\n\n- This week\u2019s candlestick on the\u00a0weekly EURUSD Forex chart<\/a>\u00a0was a bear bar with prominent tails above and below.\u00a0<\/li>
- Last week, we said that if there is a breakout, a downside breakout is slightly more likely with 2017 low close enough to be a magnet below.<\/li>
- This week, the EURUSD reached the measured move 1.4268 and just a few pips above the 2017 low. It was a bear breakout below last week\u2019s inside doji.<\/li>
- The bears want a strong break below 2017 low and a measured move down based on the height of the 7-year trading range.<\/li>
- If the bears get a few closes below the 2017 low, odds will swing in favor of a bear breakout.<\/li>
- The bulls hope that this is simply a sell vacuum test of the 7-year trading range low. They see a parabolic wedge (August 20, November 24, May 13) and a trend channel line overshoot.<\/li>
- Last week was an inside doji bar. The bulls hope that it is a one bar final flag of the move. They want a reversal higher after a breakout below the potential final flag.<\/li>
- Al has said that the market has been in a trading range for seven years. It is now near the bottom of the range. Reversals are more likely than breakouts.<\/li>
- Therefore, as strong as the selloff has been, it is still more likely a bear leg in the seven-year trading range than a resumption of the 15-year bear trend.<\/li>
- Al also said that a couple of closes below the 2017 low would probably be the start of a measured move down based on the height of the seven-year trading range. This remains true.<\/li>
- The sell-off since March 31 has been in a tight bear channel with big bear bars closing near the low. The bulls were only able to create doji bars on the way down.\u00a0<\/li>
- That means strong bears. Odds continue to favor sideways to down.<\/li>
- However, the current selloff is climactic. Because of the market context (parabolic wedge, trend channel line overshoot), traders should be prepared for a 2-legged pullback (bounce) which can begin at any moment.<\/li>
- Any pullback would likely only be minor. The selloff is strong enough for traders to expect at least a small second leg sideways to down after a pullback.<\/li><\/ul>\n\n\n\n
The Daily<\/em> EURUSD chart<\/h3>\n\n\n\n![\"EURUSD](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/05\/Eurusd-Daily-BO-from-Possible-Final-Flag-Testing-2017-Low-1-680x383.png\" "\\"\\"")
<\/a><\/figure>\n\n\n\n- The EURUSD traded sideways in the first half of the week followed by a break below the tight trading range to test the measured move and 2017 low on Thursday and Friday. <\/li>
- Friday traded below Thursday’s big breakout bar but reversed to close as a bull bar. <\/li>
- Last week, we said that odds slightly favor sideways to down. Bears want a strong break below April 28 low and follow-through selling to reach the next measured move and the 2017 low. They got that this week.<\/li>
- The bulls hope that this was a sell vacuum test of the 2017 low. They want a reversal higher from a trend channel line overshoot and a parabolic wedge (April 14, April 28, and May 13).<\/li>
- They hope that the tight trading range in the last two weeks is the final flag of the move. They want a reversal higher after a failed breakout below.<\/li>
- The bears want a strong break below 2017 low and a measured move down based on the height of the 7-year trading range.<\/li>
- Friday was a small bull bar closing near the high. The bears did not get a follow-through bear bar to confirm the breakout below the 10-day tight trading range.<\/li>
- The bears hope that Friday was simply a small pullback to be followed by another leg lower and breakout attempt below the 2017 low.<\/li>
- The sell-off since March 31 is in a tight bear channel. The bulls have not been able to create consecutive bull bars closing near the high. It means the bears are strong.<\/li>
- However, the selling has been climactic. The parabolic wedge and trend channel overshoot increase the odds of a minor pullback before a strong break below the 2017 low.<\/li>
- We have said that because of the market context, traders should be prepared for a 2-legged minor pullback which can begin at any moment. <\/li>
- It may begin after a failed breakout below the final flag around the 2017 low. This remains true.<\/li><\/ul>\n\n\n\n
Market analysis reports archive<\/h3>\n\n\n\n
![\"EURUSD](\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2022\/05\/EURUSD-Weekly-Bear-Breakout-Test-2017-Low.png\" "\\"\\"")
<\/a><\/figure>\n\n\n\n- This week\u2019s candlestick on the\u00a0weekly EURUSD Forex chart<\/a>\u00a0was a bear bar with prominent tails above and below.\u00a0<\/li>
- Last week, we said that if there is a breakout, a downside breakout is slightly more likely with 2017 low close enough to be a magnet below.<\/li>
- This week, the EURUSD reached the measured move 1.4268 and just a few pips above the 2017 low. It was a bear breakout below last week\u2019s inside doji.<\/li>
- The bears want a strong break below 2017 low and a measured move down based on the height of the 7-year trading range.<\/li>
- If the bears get a few closes below the 2017 low, odds will swing in favor of a bear breakout.<\/li>
- The bulls hope that this is simply a sell vacuum test of the 7-year trading range low. They see a parabolic wedge (August 20, November 24, May 13) and a trend channel line overshoot.<\/li>
- Last week was an inside doji bar. The bulls hope that it is a one bar final flag of the move. They want a reversal higher after a breakout below the potential final flag.<\/li>
- Al has said that the market has been in a trading range for seven years. It is now near the bottom of the range. Reversals are more likely than breakouts.<\/li>
- Therefore, as strong as the selloff has been, it is still more likely a bear leg in the seven-year trading range than a resumption of the 15-year bear trend.<\/li>
- Al also said that a couple of closes below the 2017 low would probably be the start of a measured move down based on the height of the seven-year trading range. This remains true.<\/li>
- The sell-off since March 31 has been in a tight bear channel with big bear bars closing near the low. The bulls were only able to create doji bars on the way down.\u00a0<\/li>
- That means strong bears. Odds continue to favor sideways to down.<\/li>
- However, the current selloff is climactic. Because of the market context (parabolic wedge, trend channel line overshoot), traders should be prepared for a 2-legged pullback (bounce) which can begin at any moment.<\/li>
- Any pullback would likely only be minor. The selloff is strong enough for traders to expect at least a small second leg sideways to down after a pullback.<\/li><\/ul>\n\n\n\n
The Daily<\/em> EURUSD chart<\/h3>\n\n\n\n
<\/a><\/figure>\n\n\n\n- The EURUSD traded sideways in the first half of the week followed by a break below the tight trading range to test the measured move and 2017 low on Thursday and Friday. <\/li>
- Friday traded below Thursday’s big breakout bar but reversed to close as a bull bar. <\/li>
- Last week, we said that odds slightly favor sideways to down. Bears want a strong break below April 28 low and follow-through selling to reach the next measured move and the 2017 low. They got that this week.<\/li>
- The bulls hope that this was a sell vacuum test of the 2017 low. They want a reversal higher from a trend channel line overshoot and a parabolic wedge (April 14, April 28, and May 13).<\/li>
- They hope that the tight trading range in the last two weeks is the final flag of the move. They want a reversal higher after a failed breakout below.<\/li>
- The bears want a strong break below 2017 low and a measured move down based on the height of the 7-year trading range.<\/li>
- Friday was a small bull bar closing near the high. The bears did not get a follow-through bear bar to confirm the breakout below the 10-day tight trading range.<\/li>
- The bears hope that Friday was simply a small pullback to be followed by another leg lower and breakout attempt below the 2017 low.<\/li>
- The sell-off since March 31 is in a tight bear channel. The bulls have not been able to create consecutive bull bars closing near the high. It means the bears are strong.<\/li>
- However, the selling has been climactic. The parabolic wedge and trend channel overshoot increase the odds of a minor pullback before a strong break below the 2017 low.<\/li>
- We have said that because of the market context, traders should be prepared for a 2-legged minor pullback which can begin at any moment. <\/li>
- It may begin after a failed breakout below the final flag around the 2017 low. This remains true.<\/li><\/ul>\n\n\n\n
Market analysis reports archive<\/h3>\n\n\n\n