When the market is going down - bears are in control. When bears are in control - its called a bearish market.
BEARS are SELLERS as opposed to BULLS who are BUYERS - when there are MORE SELLERS (bears) than BUYERS(bulls) - its called a Bearish Market.
Bearish market is also referred to as downtrend market or you can simply say the market is bearish.
In Forex, during the bearish market - the base currency is losing value and the quote currency is gaining value.
For EUR/USD - if this pair is bearish that means EURO is losing value while USD is gaining value.
Since Currencies are traded in pairs the negative effect of one currency becomes positive for other.
Example: There are TWO scenarios where any given currency pair could be bearish.
Let's look at EUR/USD:- The Obvious reason: EUR/USD could be bearish because European economy is doing badly than US economy
- The Not-so-obvious reason EUR/USD could be bearish because US economy is doing good when the European economy is neither good nor bad.
At any given point - the market is in one of the three periods: bearish, Bearish & Sideways.
The opposite of bearish Market is Bullish Market
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