The EUR/USD formed a Low 1 sell setup yesterday. However, there are likely buyers below.
Most Low 1 sell setups have buyers below, which leads to deeper pullbacks. This is because the context for the Low 1 short is often bad, leading to buying below the Low 1.
The context of the EUR/USD favors higher prices and a test of the September 14th high after the consecutive sell climaxes down to the May 31st low.
It was reasonable for the Always In Bear to exit above the September 18th high due to the probability of seeing a two-legged rally to the moving average.
If a bear got out above the September 18th high, it likely would not sell again below the Low 1 on the very next bar.
The bears want today to be a strong entry bar below yesterday’s Low 1. This would potentially trap the bulls who bought below the Low 1 and trap the bears out of a potentially good trade. The bulls who buy below the Low 1 will probably make money and not get trapped.
