EUR/USD: Double bottom near 1.0635 amid risk-off

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