Month-to-month EURUSD Double Prime Bear Flag

Market Overview: EURUSD Foreign exchange

The market shaped a month-to-month EURUSD double prime bear flag (July 18 and Sept 25). The bulls see the present transfer as a pullback and a retest of the breakout level. They need the bull development line or the 20-month EMA to behave as assist adopted by a retest of the current leg excessive (Sep 25). The bears They need a reversal from a double prime bear flag (Dec 28 and Sept 25) and from across the prime of the massive buying and selling vary. In addition they see a bigger double prime bear flag (July 18 and Sept 25).

EURUSD Foreign exchange market

The Month-to-month EURUSD Foreign exchange chart

• The September month-to-month EURUSD candlestick was a bull bar with a outstanding tail above closing above the center of its vary.
• Final month, we mentioned that merchants would see if the bulls can create a follow-through bull bar to check the buying and selling vary excessive or if the market would type a bear bar to check the center of the buying and selling vary as a substitute.
• September was a follow-through bull bar albeit weaker (outstanding tail above). It traded barely above the August excessive however closed beneath it.
• The bulls obtained a breakout above the triangle to retest the December 28 excessive and a few follow-through shopping for in September.
• They see the present transfer as a pullback and a retest of the breakout level.
• They need the bull development line or the 20-month EMA to behave as assist adopted by a retest of the current leg excessive (Sep 25).
• They need the month-to-month candlestick to shut with an extended tail or a bull physique.
• The bears see the current transfer as a purchase vacuum take a look at of the buying and selling vary excessive.
• They need a reversal from a double prime bear flag (Dec 28 and Sept 25) and from across the prime of the massive buying and selling vary.
• In addition they see a bigger double prime bear flag (July 18 and Sept 25).
• They hope to retest the center of the buying and selling vary (across the 20-month EMA).
• Up to now, the market stays in a 22-month buying and selling vary.
• Whereas the bulls obtained some follow-through shopping for in September, they haven’t but been capable of create a robust breakout above the December excessive.
• For now, merchants will see if the bears can create sturdy bear bars with follow-through promoting.
• Or will the present transfer be a pullback, and the month-to-month candlestick reverses to shut with an extended tail or a bull physique by the top of the month?
• The market was buying and selling across the higher third of the massive buying and selling vary (across the Aug/Sep highs space) which will be the promote zone of buying and selling vary merchants.
• Poor follow-through and reversals are hallmarks of a buying and selling vary.
• Merchants will BLSH (Purchase Low, Promote Excessive) till a breakout with sustained follow-through shopping for/promoting from both path.

The Weekly EURUSD chart

• This week’s candlestick on the weekly EURUSD Foreign exchange chart was a giant bear bar closing close to its low.
• Final week, we mentioned that merchants would see if the bull might create a breakout above the August excessive or if the market would stall across the August 23 excessive space and type some bear bars as a substitute. The higher third of the massive buying and selling vary will be the promote zone of buying and selling vary merchants.
• The market shaped a pullback testing the 20-week EMA.
• The bulls broke out above the August 23 excessive (in September) however lacked follow-through shopping for.
• They see this week as a pullback and retest of the breakout level.
• They need the market to type a better low, adopted by a retest of the September 25 excessive.
• They need the bull development line or the 20-week EMA to behave as assist.
• The bears see the current bull leg as a purchase vacuum take a look at of the buying and selling vary excessive (Dec or July).
• They obtained a reversal from across the higher third of the massive buying and selling vary from a double prime bear flag (Dec 28 and Aug 23), a better excessive main development reversal (Sep vs Aug) and a small double prime (Aug 23 and Sep 25).
• They hope that this may result in the beginning of the bear leg.
• They have to create sturdy follow-through promoting buying and selling beneath the 20-week EMA to extend the percentages of a bear leg.
• Since this week’s candlestick is a bear bar closing close to its low, it’s a promote sign bar for subsequent week.
• Odds barely favor the market to commerce somewhat decrease.
• Merchants will see if the bears can create a follow-through bear bar closing beneath the 20-week EMA. If the bears can create sturdy follow-through promoting, it’s going to improve the percentages of testing the underside of the triangle.
• Or will the market commerce decrease however reverse to shut with an extended tail or a bull physique as a substitute?
• The EURUSD is in a 99-week buying and selling vary. (Trading vary excessive: July 2023, Trading vary low: Oct 2023). 
• Merchants will proceed to BLSH (Purchase Low, Promote Excessive) inside a buying and selling vary till a breakout with follow-through promoting/shopping for.
• Poor follow-through and reversals are hallmarks of a buying and selling vary.

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