Forex Opinion & Analysis
EUR/USD: Support Remains at March 24 Low
- The EUR/USD is getting near the March 24th low and will likely find support near it.
- The channel down is tight, which increases the risk of any reversal being minor.
- The selloff from the May 4th high is a breakout on a higher time frame. This means the selloff can go much further than what seems likely.
- While the market will probably bounce at the March 24th low, traders must be open to the idea of the selloff reaching the March 15th low and possibly breaking below.
- More likely, the market will bounce before the March 15th low.
- The bulls need to develop more buying pressure to stop the bear selloff. They will likely need a double bottom with a decent trendline break of the May 4th selloff before they have a credible swing buy.