On the weekly basis, EURUSD has formed a double top patter showing a strong resistance at 1.22644 level. The pair has broken its neckline at 1.7041 with a strong bearish candle stick, just below the neckline a strong support zone of 1.6121 can also be seen. On the daily basis, the chart pattern is trading sideways forming lower highs and lower lows indicating a downtrend supported by EMA death crossover with MACD at -0.00394. Again at the 4H time frame EURUSD is trading below its EMA 50 as well as EMA 200 also facing strong resistance at 1.7041 zone, which is the neckline of the double top pattern.

Supported by a double top pattern on the weekly time frame with a minor breakout below the neckline of the pattern the pair is giving sell signals supported by MACD at -0.00566. On the daily time frame the neckline is serving as a resistance zone for the pair providing the indication that the pair will be soon heading towards 1.6121 which is a major support level on the weekly as well as daily time frame. If the pair gives a breakout below 1.6121 with a retest, a steep fall for the pair can surely be anticipated. Though the overall trend is bearish there are still possibilities for the pair to take support around 1.7041 if it moves upward, as it is a strong support level which is currently acting as a resistance. The strength of reversal can be anticipated with the sharpness of the move and candle stick pattern. The major levels should be taken into consideration while executing the trades.

EUR/USD

Aug 24 2021

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