The EUR/USD formed a bull bar, closing on its high yesterday. However, it is following two consecutive bear bars, with one closing on its low.
The bears will sell above yesterday’s high and try to get a second leg down and a test of the October low.
The bulls saw yesterday as the buy signal bar for a higher low major trend reversal. The problem that the bulls have is the pattern for the major trend reversal does not have enough bars.
It would have been better if the rally to the October high had lasted more bars and had more closes above the moving average.
Also, the retest (October 13th) of the bottom of the bear channel is only two bars, which is not enough. This will increase the risk of any reversal leading to a trading range, not a bull trend.
