Weekly EURUSD Bear Leg | Brooks Trading Course

Market Overview: EURUSD Foreign exchange

The market shaped a weekly EURUSD bear leg within the type of a 6-bar bear microchannel. The bears hope that the bear leg to retest the buying and selling vary low is underway. The bulls need the market to type a better low, adopted by a retest of the September 25 excessive. They need the August 1 low or the bull pattern line to behave as help.

EURUSD Foreign exchange market

The Weekly EURUSD chart

• This week’s candlestick on the weekly EURUSD Foreign exchange chart was a bear bar closing in its decrease half with a small tail under.
• Final week, we stated that merchants would see if the bears might create one other follow-through bear bar testing the August low and the bull pattern line or if the market will type a pullback increased within the subsequent few weeks as a substitute.
• The bears acquired one other follow-through bear bar testing the August low and the bull pattern line.
• The transfer down is in a 6-bar bear microchannel which implies sturdy promoting.
• They hope that the bear leg to retest the buying and selling vary low is underway.
• If there’s a pullback, the bears need at the very least a small second leg sideways to right down to retest the present leg low (now Oct 25).
• The bulls see the present transfer as a deep pullback and the market as being in a broad bull channel.
• They need the market to type a better low, adopted by a retest of the September 25 excessive.
• They need the August 1 low or the bull pattern line to behave as help.
• They should create bull bars with follow-through shopping for to extend the percentages of the bull leg starting.
• Since this week’s candlestick is a bear bar closing in its decrease half, it may be a promote sign bar for subsequent week.
• The market stays All the time In Quick. If there’s a pullback, odds barely favor at the very least a small second leg sideways to down.
• For now, merchants will see if the bears can create one other follow-through bear bar buying and selling under the August low and the bull pattern line.
• Or will the market stall across the August low or the bull pattern line space as a substitute?
• The EURUSD is in a 102-week buying and selling vary. (Trading vary excessive: July 2023, low: October 2023). 
• Merchants will BLSH (Purchase Low, Promote Excessive) inside a buying and selling vary till a breakout with follow-through promoting/shopping for.
• Meaning shopping for within the decrease third and promoting close to the higher third of the massive buying and selling vary.
• The center of the buying and selling vary is an space of stability.

The Day by day EURUSD chart

• The EURUSD traded down within the first half of the week. Thursday’s candlestick was a pullback bull bar however lacked sustained follow-through shopping for on Friday.
• Final week, we stated that the August 1 low or the bull pattern line is shut sufficient and will have to be examined earlier than we see bears take revenue aggressively. Merchants would see if the market will proceed to commerce decrease or if the market would stall across the August low space adopted by a pullback in the direction of the 20-day EMA within the weeks forward.
• The bulls see the present transfer as a promote vacuum and a bear leg take a look at of the August low and the bull pattern line.
• They see the market as being in a broad bull channel.
• They need the pullback to type a better low adopted by a retest of the September 25 Excessive. They need a reversal from a parabolic wedge (Oct 10, Oct 17, and Oct 23).
• They hope the August 1 low or the bull pattern line will act as help.
• They have to create consecutive bull bars closing close to their highs to point that they’re again in management.
• The bears acquired a reversal from a big double high bear flag (Dec 28 and Aug 23) and a wedge sample (Jul 17, Aug 23, and Sep 25), across the higher third of the massive buying and selling vary.
• The transfer down is in a good bear channel. Meaning persistent promoting.
• The bears anticipate at the very least a small second leg sideways to right down to retest the leg excessive low after a bigger pullback.
• To this point, the tight bear channel means sturdy bears.
• The chances barely favor sideways to down buying and selling and favor at the very least a small second leg sideways to down after a pullback.
• Nonetheless, the transfer which began on September 30 has lasted a very long time and is barely climactic.
• We may even see a minor pullback (in all probability testing close to the 20-day EMA), adopted by at the very least a small second leg sideways to down after that.
• The decrease third of the massive buying and selling vary may be the purchase zone of buying and selling vary merchants.
• Merchants will proceed to BLSH (Purchase Low, Promote Excessive) inside a buying and selling vary till a breakout with follow-through promoting/shopping for.
• The center of the buying and selling vary is an space of stability.

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