The EURUSD currency pair is increasingly indicating signs of weakening after forming a double top pattern on a short-term time frame, a technical formation often associated with trend reversals. Following its inability to breach the same resistance level twice, the price has begun to decline, coinciding with the Bollinger Bands flattening out—signifying a loss of bullish momentum. Moreover, the Stochastic indicator is also reflecting a drop from the overbought region, reinforcing the notion that selling pressure is starting to dominate.
Should this pressure persist, there is a likelihood that EURUSD will continue its decline towards prior-established support levels. A breakout below the neckline of the double top pattern could serve as additional confirmation of an ongoing trend reversal.
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On the 15-minute time frame, EURUSD presents a bearish signal after successfully breaking below the low of a triangle consolidation area, suggesting potential continuation of selling pressure. This decline is further supported by the Stochastic indicator, which is trending down from the overbought level, indicating a weakening buying momentum and the possibility of further sell-offs. With the combination of the technical pattern and downward signals from the indicators, EURUSD stands a chance of continuing its drop towards support at 1.13050.
Technical Reference: sell below 1.14810
Potential Stop Loss 1: 1.14520
Potential Stop Loss 2: 1.14810
Potential Take Profit 1: 1.13340
Potential Take Profit 2: 1.13050
