FX.co ★ EUR/USD Double Top Invalidated!

EUR/USD rallies as the USDX plunges and extends yesterday's drop. The pair has managed to come back above 1.18 static resistance signaling further gains in the upcoming period.

The pair is trading in a range, so we need a higher high to confirm an important upside movement. EUR/USD is bullish as long as it stays above 1.1695 low, the failure to reach this level signals strong buyers.

EUR/USD has developed a potential double top pattern, buy it has failed to make another lower low, to drop below 1.1695 to confirm this reversal pattern. Closing and stabilizing above 1.18 and above the 250% line could announce further growth at least till 1.1909 static resistance.

An upside breakout from this range will suggest buying with a potential target at 1.2130 level.

• EUR/USD Trading Tips

Buy another higher high, jump, and close above 1.1909 level, place your stop loss below 1.1712 former low and the Take Profit at 1.2125 level.

Sell only a valid breakdown below 1.1695 static support, the next downside target is seen at 1.1495 level.