forexbrokr Blog Banner

forexbrokr

EUR/USD Forms Double Bottom but Remains Capped

### EUR/USD Key Points

  • Massive descending triangle break lower on the daily.
  • Double bottom forms on the back of more neutral FOMC minutes.
  • But price remains capped.

EUR/USD Technical Analysis

Happy Monday!

I hope your weekend away from the charts was equal parts productive and mind-clearing.

But with markets open and moving along nicely, let's dial back into the game and take a look at the unfolding EUR/USD narrative.

We last week looked at the massive EUR/USD descending triangle and susequent, stuttering breakout to the downside.

But things can change mighty quickly in this game so let's take a look at a couple of charts below:

190527-eurusd-d1.png

190527-eurusd-h1.png

Starting with the daily chart, you can see exactly what I'm talking about thanks to that massive double bottom.

This was a news driven spike, thanks to the Federal Reserve alerting markets to not expect a rate cut anytime soon, via the FOMC minutes we got last Thursday.

With the Fed taking a more neutral rather than dovish stance, we saw the USD weaken and therefore EUR/USD take advantage.

The fact price was sitting at swing low support like this was just more fuel to the fire and the rip was a good one (1).

Moving our attention to the second chart, you can see that the zone we were using to as a short term area to get a retest entry off was broken, but also that it was then respected on the opposite side (2).

In thin, Monday morning Asian trading, price is respecting the underside of that short term trend line (3), but I wouldn't be paying too much attention here.

For me, it's still all about the massive daily descending triangle.

While we've double bottomed here, price has yet to make a higher high to confirm the pattern and is still well and truly capped by triangle resistance.

I wouldn't recommend getting too carried away, chopping and changing just yet.

Best of probabilities to you.

Dane.

Upcoming Economic Releases

  • GBP Bank Holiday (Spring Bank Holiday)

  • USD Bank Holiday (Memorial Day)

  • USD Prelim GDP q/q

    Return from EUR/USD Forms Double Bottom but Remains Capped to forexbrokr's Web3 Blog

EUR/USD Forms Double Bottom but Remains Capped was published on and last updated on 26 May 2019.