EURUSD, important decision in the way.

EURUSD / 1D

Hello traders, welcome back to another market breakdown.

In this analysis, I'll lay down few arguments for bulls and bears, and let you make your decision as a trader based on the next days.

Arguments for Bears:

1- Bears see a trend continuation, after 3 three-bar bear breakout that are closing at their lows. This breakout is probably strong enough to lead to a couple of legs down.
2- The market is in an overall trading range, so the three-bar bear breakout may have a deeper pullback than bears want before a second or third leg down.
3- The bears want a break below the May 13 neckline of the double top and a measured move down, which projects to around 1.0000. It is unlikely the market will reach that projection, but it is possible.

Arguments for Bulls:

1- The bulls got a leg down after the three-bar bear breakout. These bulls will try hard to create a 2nd leg trap following any second leg down.
2- Bulls are looking for a major trend revesal from the 7 years trading range and the measured move on the monthly. Bulls want a bull surprise bar closing above the last 2 days highs. it would create a small micro double bottom, and increase the probability of a reversal up.

More likely, the market will continue in a trading range, and the bulls will ultimately test the June high, April 13 high, and the March 31 high.

Comment:

The bears got trapped and bulls got what they wanted. Micro double bottom.