The EURUSD pair rebounded from the 1.160 resistance level after the NFP report last Friday, forming a Double Top pattern on the 4-hour chart. This pattern is a strong indication of a potential bearish reversal. With the price having broken below the neckline, it's now approaching a retest of this level and the previously broken trendline.
Key areas to watch include:
1. The neckline around 1.1600, which is expected to act as resistance.
2. The trendline between 1.1670-1.1700, which could provide additional resistance to confirm the bearish outlook.
Possible scenarios include:
Bearish Outlook (Preferred): If the price encounters resistance at these levels and fails to break higher, it may lead to a decline.
This setup suggests a potential selling opportunity, with traders looking to short the pair near the resistance zones.
Key areas to watch include:
1. The neckline around 1.1600, which is expected to act as resistance.
2. The trendline between 1.1670-1.1700, which could provide additional resistance to confirm the bearish outlook.
Possible scenarios include:
Bearish Outlook (Preferred): If the price encounters resistance at these levels and fails to break higher, it may lead to a decline.
This setup suggests a potential selling opportunity, with traders looking to short the pair near the resistance zones.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.