- 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.
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
-637085971562012831.png)
Trend: Bearish
Technical levels
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