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EUR/USD: Double Top in the daily chart driving the price downside

EagleFX

EUR/USD has been bearish on the daily chart upon producing a Double Top. The chart created a bearish engulfing candle at its second rejection. Yesterday’s candle came out as a bearish candle as well. The H4 chart shows that the price has had consolidation. As of writing, it has been bearish. The current H4 candle may end up being a bearish reversal candle. If that happens, the sellers may get an opportunity to go short in the pair below wave’s lowest low.

Chart 1 EUR/USD H4 Chart


The chart shows that the price had its rejection around 1.14000 and headed towards the South. It had a bounce at 1.12170. Since then, it has been in consolidation. The level of 1.12700 has been working as a level of flipped resistance. If the level ends up producing a bearish reversal candle, the sellers may go short below the level of 1.12170. The daily chart shows that the price may head towards the level of 1.10000 to find its next support. This may cause the pair to make a strong bearish move in the H4 chart as well.

Trade Summary:

Entry: Sell below 1.12170

Stop Loss: Above 1.12700

Take Profit 1: 1.11600

Take Profit 2: 1.11400

Take Profit 3: 1.11000

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