EUR/USD Classical 03.15
EUR/USD:The latest topside failure above 1.4000 and ahead of 1.4035 is significant and inability to establish back above the psychological barrier opens the door for a bearish trend reversal in favor of the USD. Tuesday’s setbacks have already resulted in a break below Monday’s low to set up a potential bearish reversal day, and should the market end up closing lower on the day, we could also see the formation of a double top on the daily chart. Neckline support comes in at 1.3750 and a break below would confirm the formation and open a measured move downside extension back towards the 1.3500 area over the coming days.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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