EUR/USD Price Analysis: Teases double-top bearish formation below 1.2000
|- EUR/USD begins the week on a back foot.
- 50-HMA, two-week-old support line test intraday sellers ahead of confirming the bearish chart pattern.
- 200-HMA adds to the downside filters, bulls need clear break of 1.2000 for fresh entries.
EUR/USD holds lower ground near 1.1975, down 0.07% intraday, following a sluggish start to the week’s trading during Monday’s Asian session. In doing so, the sellers battle 50-HMA while teasing the double-top bearish chart formation on the hourly play.
Given the recently downbeat Momentum, coupled with rejection below the 1.2000 threshold, EUR/USD may witness further pullback.
However, sellers may wait for a clear break below the 1.1950 horizontal support before taking fresh entries.
While a downside break of 1.1950 will confirm the bearish chart pattern, directing the quote towards the 1.1900 round-figure, 200-HMA and an upward sloping trend line from April 05, respectively around 1.1965 and 1.1920, add to the downside filters.
Alternatively, EUR/USD buyers should wait for a clear upside break of the 1.2000 hurdle before eyeing the mid-February lows near 1.2025 during the fresh recovery moves.
EUR/USD hourly chart
Trend: Further weakness expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.