x
Breaking News
0

EUR/USD May Be Forming Double Bottom

By ForexCycle.comForexJun 02, 2017 11:04AM ET
www.investing.com/analysis/eurusd-might-be-forming-a-double-bottom-pattern-200192852
EUR/USD May Be Forming Double Bottom
By ForexCycle.com   |  Jun 02, 2017 11:04AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

EUR/USD might be forming a double bottom pattern on its weekly chart. The first bottom is at the March 2015 low of 1.0462, the second bottom is at the January 2017 low of 1.0340, and the neckline is from the August 2015 high of 1.1713 to the May 2016 high of 1.1616, now at around 1.1450. The price has to break through the neckline before confirming this reversal formation.

Weekly EUR/USD
Weekly EUR/USD

The Daily Chart

EUR/USD stays above the ascending trend line with support at around 1.1040 on the daily chart, indicating that the pair remains in the bullish movement from the April 10 low of 1.0569. As long as the pair is above the trend line, the pullback from 1.1268 could be treated as consolidation of the uptrend. Range trading between 1.1040 and 1.1268 would likely be seen over the next several days. Near-term resistance is at 1.1268, a break through this level could take price to the next resistance level at around 1.1450 (the neckline resistance).

Daily EUR/USD
Daily EUR/USD

Break Through 1.1450 Resistance

A clear break out of the neckline resistance at 1.1450 will indicate that the long term downtrend from the May 2014 high of 1.3993 had completed at 1.0340 already, then the following bullish movement could bring price to 1.2700 area.

On The Downside

Let’s back to the daily chart. A clear break below the trend line support at 1.1040 will suggest that the short term uptrend from 1.0569 had completed at 1.1268 already, then the pair will find support at around 1.0950.

Technical Levels

  • Support: 1.1040 (trend line support on daily chart), 1.0950.
  • Resistance: 1.1268 (near term resistance), 1.1450 (the neckline of the double bottom pattern), 1.2700 (measured move target).
EUR/USD May Be Forming Double Bottom
 

Related Articles

EUR/USD May Be Forming Double Bottom

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

 
Are you sure you want to delete this chart?
 
Write your thoughts here
 
Replace the attached chart with a new chart ?
Post
Post also to:
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
 
Replace the attached chart with a new chart ?
Post 1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
 
 
 
Add Chart to Comment
Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email