Double Top Reversal Spotted

26 mar 2016

EURUSD A bearish double top pattern has emerged where the double top marks an uptrend in the process of becoming a downtrend. This is seen on the daily interval marked by both twin peaks of February & mid March trading sessions. A possible retest of bottom lows is expected, first at the 1.1017 level, a failure to hold above that level would see pricing direction taking the next bottom support levels ; 1.0853 & breakdown under 1.0729. Watch the correlation levels of Gold & eurusd, should gold continue to extend lower after this years rebound, it could cause the common wealth currencies to weaken again. Right now, Gold is the leading indicator for currency direction, and should gold come under pressure like it had this week, then not good for eurusd pricing.