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.

Omkar Godbole FXStreet Contributor

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

EUR/USD

Overview
Today last price	1.1068
Today Daily Change	-0.0003
Today Daily Change %	-0.03
Today daily open	1.1069

Trends
Daily SMA20	1.1101
Daily SMA50	1.104
Daily SMA100	1.1121
Daily SMA200	1.1193

Levels
Previous Daily High	1.1094
Previous Daily Low	1.1064
Previous Weekly High	1.1063
Previous Weekly Low	1.0941
Previous Monthly High	1.118
Previous Monthly Low	1.0879
Daily Fibonacci 38.2%	1.1076
Daily Fibonacci 61.8%	1.1082
Daily Pivot Point S1	1.1058
Daily Pivot Point S2	1.1047
Daily Pivot Point S3	1.1029
Daily Pivot Point R1	1.1087
Daily Pivot Point R2	1.1105
Daily Pivot Point R3	1.1116

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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