EUR/USD Price Analysis: Drops below 1.09 as double top forms, threatening to negate a triple bottom

A triple bottom in the EUR/USD daily chart remains in play but at a brisk of being negated.
EUR/USD’s price action during the last couple of weeks created a double top, which could shift the pair’s bias.

Christian Borjon Valencia FXStreet

The Euro (EUR) drops from around weekly highs of 1.0925 on a buoyant US Dollar (USD) and on buyers’ failure to crack the YTD high at 1.0929. Nevertheless, a triple bottom in the daily chart is intact, at the brisk of being negated. At the time of writing, the EUR/USD is trading at 1.0842.

EUR/USD Price action

Failure to hold prices above the 1.0900 figure has exposed the EUR/USD to further selling pressure. A triple bottom in the daily chart remains in play. But, the upward movement was capped at around March’s 23 high of 1.0929, ahead of testing 1.1000.

For a bullish resumption, EUR/USD buyers must reclaim 1.0900, followed by 1.0929. Break above will expose the 1.1000 figure, followed by the YTD high at 1.1032.

Another scenario has developed in the last couple of weeks. Albeit a “triple bottom” is in place, the formation of a double top emerged. Hence, if the EUR/USD continues to dive further and achieves a daily close below the March 24 swing low of 1.0713, it would pave the way to test 1.0500.

Backing up the latter scenario are oscillators. The Relative Strength Index (RSI), although at bullish territory, its slope turned downwards, while the Rate of Change (RoC) shifted neutral.

EUR/USD Daily chart

EUR/USD Technical levels

EUR/USD

Overview
Today last price	1.084
Today Daily Change	-0.0065
Today Daily Change %	-0.60
Today daily open	1.0905

Trends
Daily SMA20	1.0714
Daily SMA50	1.0732
Daily SMA100	1.0646
Daily SMA200	1.034

Levels
Previous Daily High	1.0926
Previous Daily Low	1.0824
Previous Weekly High	1.093
Previous Weekly Low	1.0631
Previous Monthly High	1.1033
Previous Monthly Low	1.0533
Daily Fibonacci 38.2%	1.0887
Daily Fibonacci 61.8%	1.0863
Daily Pivot Point S1	1.0844
Daily Pivot Point S2	1.0782
Daily Pivot Point S3	1.0741
Daily Pivot Point R1	1.0947
Daily Pivot Point R2	1.0988
Daily Pivot Point R3	1.105

Author

Christian Borjon Valencia

FXStreet

Christian Borjon began his career as a retail trader in 2010, mainly focused on technical analysis and strategies around it. He started as a swing trader, as he used to work in another industry unrelated to the financial markets.

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