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Forex Update: EURUSD starting to set up for a new push higher?

December 8, 2021
by Joseph Jeffriess, Market Analyst

Hi traders, today we’re looking at the EURUSD as price has started to start a second step of support. Could this lead to a new push higher?

Looking at the daily chart below, we’re primarily concentrating on the area in the orange box. This area shows a pattern we are watching that could suggest that buyers are trying to reverse seller momentum on the short and possibly medium-term. What are we watching? Looking at the orange box we can see the LL. Buyers formed a rally after this low breaking the fast downtrend. After the last test we can see demand formed a failed low and a new HL. Support has also developed under today’s open at 1.1260. This can be called a one-two pattern but for now, it remains unconfirmed.

What we would like to see next is a new HH above 1.1380. This completes a LL-HL-HH. Yes, we had a HH but we would like to see one more to confirm the pattern. Buyers face two levels of resistance to complete this and if sellers are able to break support there is a worry sellers could look to set a new low test possibly.

EURUSD D1 Chart

 

All times are AEDT.