EUR/USD Technical Analysis: Teasing double top breakdown
|- EUR/USD is probing double top neckline support in Asia.
- A close below 1.1073 would confirm a double top breakdown.
- Key indicators and candlesticks are reporting a bearish bias.
EUR/USD's pullback from highs near 1.1180 has established a double top pattern on the daily chart. The pair is currently trading around the neckline support of 1.1073.
A close below that level would confirm breakdown and open the doors for 1.0966 (target as per the measured move method).
A bearish close could be seen as the 14-day relative strength index (RSI) has dropped below 50 and the MACD histogram has dropped below zero for the first time since Oct. 3.
What's more, the pair has violated the trendline connecting Oct. 1 and Oct. 29 lows. Further, Tuesday's slide confirmed an impending bearish reversal warned by Monday's bearish outside day candle.
All-in-all, the odds are stacked in favor of a deeper drop. A close above 1.1180 is needed to invalidate the bearish view.
Daily chart
Trend: Bearish
Technical levels
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.