EUR/USD Daily Chart
- The EUR/USD is beginning to form a bottom near the January 6th low.
- While the bears can argue that the market is in a small pullback bear trend, it is low in a trading range. This means that the risk of a reversal up is real.
- It is reasonable for bears to consider exiting on a reversal up, such as yesterday’s bull reversal bar (Green Box).
- Overall, traders will pay close attention to today’s reversal to see its strength. If the bulls can get a strong reversal up, more traders will buy, betting on a second leg up.