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.

Omkar Godbole FXStreet Contributor

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

EUR/USD

Overview
Today last price	1.1071
Today Daily Change	-0.0001
Today Daily Change %	-0.01
Today daily open	1.1072

Trends
Daily SMA20	1.1096
Daily SMA50	1.104
Daily SMA100	1.1123
Daily SMA200	1.1195

Levels
Previous Daily High	1.114
Previous Daily Low	1.1063
Previous Weekly High	1.1063
Previous Weekly Low	1.0941
Previous Monthly High	1.118
Previous Monthly Low	1.0879
Daily Fibonacci 38.2%	1.1093
Daily Fibonacci 61.8%	1.1111
Daily Pivot Point S1	1.1043
Daily Pivot Point S2	1.1015
Daily Pivot Point S3	1.0966
Daily Pivot Point R1	1.112
Daily Pivot Point R2	1.1169
Daily Pivot Point R3	1.1197

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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