A confirmed break of the trendline would likely lead to a deeper sell-off. Such a move might reach a target at 1.0865 initially (the 61.8% Fibonacci (Fib) extrapolation of the move prior to the trendline break). The 200-day Simple Moving Average (SMA), however, could come in with support a little before then at 1.0875, suggesting another more conservative option.
Adding to the bearish picture is the possible Double Top price pattern which might have formed during September. This is the “M” shaped pattern formed just under the heavy resistance line at 1.1226. Double Tops are signals that the uptrend has reached its conclusion and price is reversing. The pattern's "neckline" at 1.1001 has already been broken, confirming activation of the pattern’s downside target at 1.0858, the 61.8% Fib extrapolation of the height of the pattern lower.EUR/USD Price Prediction: Chart of bad omens with break below trendline, Double Top
A confirmed break of the trendline would likely lead to a deeper sell-off. Such a move might reach a target at 1.0865 initially (the 61.8% Fibonacci (Fib) extrapolation of the move prior to the trendline break). The 200-day Simple Moving Average (SMA), however, could come in with support a little before then at 1.0875, suggesting another more conservative option.
Adding to the bearish picture is the possible Double Top price pattern which might have formed during September. This is the “M” shaped pattern formed just under the heavy resistance line at 1.1226. Double Tops are signals that the uptrend has reached its conclusion and price is reversing. The pattern's "neckline" at 1.1001 has already been broken, confirming activation of the pattern’s downside target at 1.0858, the 61.8% Fib extrapolation of the height of the pattern lower.Publication date:
2024-10-08 16:18:40 (GMT)
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