EUR/USD: Second Leg Up After Rally
Al Brooks | Dec 05, 2022 09:32AM ET
- The EUR/USD is getting a second leg up after the November 10 and 11 upside breakout. At the moment, the odds are that the market will have to reach the measured move projection (red line at top of chart).
- Bears hope this current rally will fail and become a failed breakout above the November 15 high.
- Bears have a problem: the second leg up is a three-bar bull micro channel with all three bars closing near their highs.
- Bears will wait for at least a micro double top before looking to sell for a test down.
- Bulls need to demonstrate strength and have today close as a bull breakout bar closing on its high far above the November 15 high.
- Overall, traders will pay close attention to today to see if the current bar will close on its high or the current bar will close as a bear bar and be a possible failed breakout of the November 15 double top.
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