FX.co ★ EUR/USD: potential double top

The EUR/USD pair dropped after reaching the 1.0496 level. Now, it was trading at 1.0379 level at the time of writing. It has crashed as the Dollar Index has managed to rebound in the short term. After its strong sell-off, it could try to rebound.

Fundamentally, the German Prelim CPI is expected to be released today and it could report a 0.2% drop. Still, the major event of the day is represented by the US CB Consumer Confidence which could drop from 102.5 points to 100.0 points. A deeper drop should weaken the greenback while better-than-expected data could lift the USD.

EUR/USD Found Temporary Support!

Technically, the rate dropped below the immediate uptrend line and now it has retested it and 1.0481. EUR/USD registered only a false breakout with great separation above these obstacles and now it has turned to the downside.

The 1.0368 historical level and the weekly pivot point of 1.0350 represent downside obstacles. only staying above these levels could announce an upside movement.

EUR/USD Forecast!

A valid breakdown below the weekly pivot point of 1.0350 and a new lower low activates more declines towards S1 (1.0260) and down to 1.0226. This represents a selling opportunity.

The Double Top pattern could be activated by a valid breakdown below 1.0226. This could signal a potential drop below parity.