EUR/USD Technical Analysis: Double top breakdown confirmed
|- EUR/USD's daily chart shows a double top bearish reversal pattern.
- The path of least resistance is to the downside.
EUR/USD's bounce from 1.0879 has likely ended and the bears seem to have regained control, a bearish chart pattern indicates.
On Wednesday, the pair closed below 1.1073 (Oct. 25 low), confirming a double top breakdown on the daily chart. The bearish reversal pattern has opened the doors for 1.0966 (target as per the measured move method).
The breakdown looks more bearish if we take into account the fact that the pair created an inverted hammer on Wednesday. Further, the double top reversal has bolstered the price-negative setup, as represented by an outside day bearish reversal pattern created on Monday and Tuesday.
All-in-all, the path of least resistance is to the downside. The pair may crowd out weak hands with a move to 1.1090 before a deeper drop, as suggested by the double top breakdown.
As of writing, EUR/USD is trading largely unchanged on the day 1.1068.
Daily chart
Trend: Bearish
Technical levels
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