Double Top In View For The EUR/USD - Forex News by FX Leaders
The Euro is sinking on weaker GDP growth forecasts

Double Top In View For The EUR/USD

Posted Friday, June 21, 2019 by
Shain Vernier • 1 min read

It has been a big week for the EUR/USD, rallying more than 110 pips to the daily Double Top pattern near 1.1350. For the past three days, bidders have driven rates higher in response to the FED’s 180-degree shift in policy. Given concerns over an economic slowdown, relaxed U.S. monetary policy, and the U.K. leadership picture clearing a bit, the EUR/USD has eclipsed April’s highs.

Moments ago, FOMC member Lael Brainard issued several comments toward the FED’s evolving policy toward the USD. The basic gist was more of the same: uncertainty is growing, risks are up, and rate cuts are imminent. Thus far, the comments appear to have brought more buyers to the EUR/USD.

EUR/USD Approaches Daily Double Top

One look at the daily chart pretty much sums up the situation: a dovish FED means a bullish EUR/USD.

EUR/USD, Double Top Pattern
EUR/USD, Daily Chart

As we roll into the final trading week of June, here are the levels to watch in the EUR/USD:

  • Resistance(1): Daily Double Top Pattern, 1.1343 – 1.1347
  • Support(1): Daily SMA, 1.1271
  • Support(2): Bollinger MP, 1.1228

Bottom Line: At this point, it is all systems go for the EUR/USD, but that may change very soon. Rates are approaching a key area of topside resistance just beneath the 1.1350 handle.

Until elected, I will have sells ready to go from the Double Top area at 1.1447. With an initial stop at 1.1376 this trade produces 25 pips on a slightly sub-1:1 risk vs reward management plan.

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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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