EUR/USD: Double bottom near 1.0635 amid risk-off
- EUR/USD defended Friday's low in Asia and now looks to be charting a double bottom pattern.
- Haven demand against commodity dollars is likely boding well for EUR/USD.
EUR/USD is charting a bullish reversal pattern on technical charts amid another brutal sell-off in the global equity markets.
The common currency is drawing haven bids against currencies like the New Zealand dollar and the Australian dollar and the uptick in the crosses seems to be lifting EUR/USD.
The currency pair found bids near 1.0635 in early Asia and is currently trading near 1.0717, representing a 0.20% gain on the day.
Stock markets took a beating in Asia with the S&P 500 futures triggering a limit down with a 5% drop, as the fears of a coronavirus-led slowdown in the global economy were bolstered by the US Senate's failure to push forward the rescue package.
Double bottom
The pair defended the area around 1.0635 on Friday and again found bids around that level during Monday's Asian trading hours.
The double bottom has the neckline resistance at 1.0831, which, if breached, would open the doors to 1.0442 (target as per the measured move method).
A breakout may be seen if the risk aversion worsens, leading to deeper losses in the commodity dollars and increased demand for the common currency. The economic calendar is light with the German Bundesbank's monthly report scheduled to release sometime during the European trading hours. Traders may also take cues from the Eurozone Consumer Confidence for March and the Chicago Fed National Activity Index for February.
Technical levels
EUR/USD
Overview
Today last price1.0717
Today Daily Change0.0021
Today Daily Change %0.20
Today daily open1.0696
Trends
Daily SMA201.107
Daily SMA501.1022
Daily SMA1001.1057
Daily SMA2001.1091
Levels
Previous Daily High1.0831
Previous Daily Low1.0638
Previous Weekly High1.1237
Previous Weekly Low1.0638
Previous Monthly High1.1089
Previous Monthly Low1.0778
Daily Fibonacci 38.2%1.0757
Daily Fibonacci 61.8%1.0712
Daily Pivot Point S11.0612
Daily Pivot Point S21.0528
Daily Pivot Point S31.0419
Daily Pivot Point R11.0806
Daily Pivot Point R21.0915
Daily Pivot Point R31.0999
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
