empty
 
 
10.08.2020 11:08 AM
EUR/USD Double Top Taking Shape!

EUR/USD is trading in the red and it seems poised to drop in the short term after the failure to make another higher high. The rate has printed a double top pattern on the H4 chart, the validation could bring a great trading opportunity.

The USDX's rebound sends EUR/USD lower, another higher high on the US Dollar Index will really suggest a strong correction on this pair.

This image is no longer relevant

EUR/USD has retested the 1.18 psychological level and now it could drop further towards the 1.1695 former low. The failure to make another higher high and to approach the WL2 has signaled an overbought situation.

The double top reversal pattern will be confirmed below the 1.1695 level, if EUR/USD makes another lower low. EUR/USD could drop and approach 1.1495 static support if the chart pattern will be confirmed.

  • EUR/USD Trading Tips

Sell below the 1.1695 level, the first target is seen at the 1.1495 level, while the second one could be represented by 1.1348 level.

Buy a consolidation above the 1.18 level, or another higher high, a jump, and close above the 1.1909 level. This scenario will invalidate the double top and will signal a potential growth way above the 1.20 level.

Ralph Shedler,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $1000 more!
    In April we raffle $1000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback