Curso de Trading de Brooks

Aprenda a operar con la acción del precio de forma consistente

 

More results...

EURUSD Weak Follow-through Bull Bar

By

Market Overview: EURUSD Forex

The EURUSD Forex bulls got a weak follow-through bull bar following last week’s High 2 buy entry. The prominent tail above this week’s candlestick indicates that the bulls are not yet as strong as they would like to be. The bulls need to do more to convince traders that a larger sideways to up pullback lasting many weeks may be underway. 

The bears hope the last few weeks were simply a 2-legged sideways to up pullback and want at least a retest of Sept low.

EURUSD Forex market

The Weekly EURUSD chart

EURUSD Weekly: Bulls Weak Follow-through Bar
  • This week’s candlestick on the weekly EURUSD Forex chart was a weak follow-through bull bar with prominent tails above and below.
  • Last week, we said that the odds slightly favor the EURUSD to trade at least a little higher. 
  • This week broke above the Big Round Number 1.000 but closed below it. The bulls got a follow-through bull bar.
  • The bears want a strong breakout below the 2017 low, and a measured move down based on the height of the 7-year trading range. This will take them to the year 2000 low.
  • The move down is in a tight bear channel. That means strong bears. 
  • The bear trend has also lasted a long time and is climactic.
  • While the breakout below the July-August low in September was strong, the bears failed to get follow-through selling.
  • The bears hope the last few weeks were simply a 2-legged sideways to up pullback and want at least a retest of Sept low.
  • If next week trades higher, they want the EURUSD to stall and reverse lower again, forming a double top bear flag with Sept 12 high or around 20-week exponential moving average.
  • The bulls hope that the recent 10-week trading range (July to Sept) is the final flag of the move. 
  • They want a reversal higher from a wedge bottom (May 13, July 14 and Sept 28) and a trend channel line overshoot.
  • The bulls triggered the second entry long (High 2) and got a follow-through bull bar this week. 
  • The bulls kept failing to get sustained follow-through buying, a recurring theme since the selloff started in 2021. 
  • We said that if the bulls manage to get follow-through buying, it could signal a potential change in the character of the market.
  • However, the prominent tail above this week’s candlestick indicates that the bulls are not yet as strong as they would like to be. 
  • The bulls need to do more to convince traders that a larger sideways to up pullback lasting many weeks may be underway. 
  • They need to create strong consecutive bull bars closing near their highs, breaking far above the bear trend line and 20-week exponential moving average to convince traders.
  • Since this week was a bull bar with a prominent tail above, it is not a strong buy signal bar.
  • Odds slightly favor the EURUSD to still be in the sideways to up pullback phase.
  • The EURUSD is in a small trading range between 0.95 and 1.00. 
  • Traders will BLSH (Buy Low, Sell High) until there is a breakout from either direction.

The Daily EURUSD chart

EURUSD Daily: BO Test of Bear Trendline
  • The EURUSD traded sideways to up and broke above Big Round Number 1.000 on Wednesday.
  • However, there was no follow-through buying and the EURUSD pulled back slightly to close below 1.000 by the end of the week.
  • Last week, we said that the odds favor the EURUSD to trade at least slightly higher. The EURUSD is forming a trading range between 0.95 and 1.00 and traders will BLSH (Buy Low, Sell High) within this range until there is a strong breakout from either direction.
  • The bulls want a failed breakout below the 7-year trading range.
  • They hope that the recent 10-week trading range pullback (July to Sept) is the final flag of the move down which started in February. 
  • The bulls want a reversal higher from a wedge bottom (May 13, July 14 and Sept 28) and trend channel line overshoot following a sell climax.
  • However, they have not been able to create sustained follow-through buying, a recurring theme since 2021. Traders are looking for signs if this time will be different.
  • The bulls will need to create consecutive bull bars closing near their highs to convince traders that a reversal higher may be underway.
  • The bulls got a second leg higher from a higher low major trend reversal (October 13).
  • They see the pullback on Thursday and Friday simply as a breakout test of the bear trend line. 
  • If the EURUSD trades slightly lower, they want another leg up to complete the wedge bear flag where the first legs are on October 4 and 27.
  • The bears want a continuation down and a measured move down based on the height of the 7-year trading range. That would take them to the year 2000 low.
  • The bears want another leg lower retesting the Sept low followed by a strong breakout with follow-through selling. 
  • They hope the current move is simply a 2-legged sideways to up pullback and want reversal lower from a double top bear flag (Sept 12).
  • Since Friday was a small bull doji, it is not a strong sell signal bar for Monday.
  • The EURUSD is forming a trading range between 0.95 and 1.00. 
  • Traders will BLSH (Buy Low, Sell High) within this range until there is a strong breakout from either direction.
  • Odds slightly favor the EURUSD to still be in the sideways to up pullback phase.

Trading room

Traders can see the end of the day bar-by-bar price action report by signing up for free at BrooksPriceAction.com. Al talks about the detailed Emini price action real-time throughout the day in the BrooksPriceAction.com trading room. We offer a 2 day free trial.

Market analysis reports archive

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

>