Triple-Top Pattern A Near Miss For The EUR/USD

Since establishing a daily high of 1.1721 during the U.S. overnight session, the EUR/USD has been dominated by bearish price action. Values have fallen by more than 70 pips, contrary to the extremely negative U.S. Retail Sales release. At press time, intraday time frames are trending steeply south and pushing session lows.

In a live market update from Thursday, I outlined a short trading plan from a Triple-Top pattern on the daily chart. Today’s initial bull run fell short of entry before posting a reversal. Perhaps early next week will bring the 1.1750 area into view for the EUR/USD.

EUR/USD Technical Outlook

All roads currently lead south for the EUR/USD. Rates continue to fall dramatically, favoring short-term bears. With no technical support areas present until the 1.1600 handle is taken out, the sell-off may not yet be over.

For the last 6+ hours of the trading week, here are two support levels worth keeping an eye on:

• Support(1): Daily SMA, 1.1585
• Support(2): Bollinger MP, 1.1569

Bottom Line: Until the closing bell, longs from above the Daily SMA at 1.1587 provide a nice scalping setup to the bull. Using a tight 1:1 risk vs reward management plan and a modest profit target of 8 pips, this trade is an affordable one to execute before the weekly close.

As of this writing, the EUR/USD is trading near the 1.1625 level. It will require some work, but with a bit of luck, this market will take out 1.1600 and trigger the long scalp before the weekend break.