EURUSD bearish–Bearish intraday reversal forms a tweezer top
EURUSD 1.1369 – bearish – Bearish intraday reversal forms a tweezer top
EURUSD rallied strongly to reach 1.1494 Thursday (October 15, 2015 high, near 61.8% of 1.1713/1.1086 fall) where the resistance proved to be tough. Subsequent sharp reversal formed a tweezer top (as shown on the daily chart) which typically suggests near-term topping especially when the indicators are in the overbought territory, and risks further weakness towards the 1.1267/1.1234 area (October 9/8, 2015 lows).
However, failure to see follow-through would negate the pattern’s bearish bias. A quick rebound above 1.1494 would signal return of strength and open 1.1560 (August 26, 2015 high) near 76.4% of the 1.1713/1.1086 fall.
Outlook:
Intraday: bearish
Daily: bearish
Weekly: neutral
EURUSD rallied strongly to reach 1.1494 Thursday (October 15, 2015 high, near 61.8% of 1.1713/1.1086 fall) where the resistance proved to be tough. Subsequent sharp reversal formed a tweezer top (as shown on the daily chart) which typically suggests near-term topping especially when the indicators are in the overbought territory, and risks further weakness towards the 1.1267/1.1234 area (October 9/8, 2015 lows).
However, failure to see follow-through would negate the pattern’s bearish bias. A quick rebound above 1.1494 would signal return of strength and open 1.1560 (August 26, 2015 high) near 76.4% of the 1.1713/1.1086 fall.
Outlook:
Intraday: bearish
Daily: bearish
Weekly: neutral
