EUR/USD Forming Double Top –Bearish Reversal Toward Key Support?📉 EUR/USD Technical Outlook – Bearish Bias Developing 🔍
🟪 Key Resistance Zone:
📍 1.1350 – 1.1450
Price has tested this resistance zone multiple times, forming a double-top pattern (🔄) within the highlighted circle. This signals buying exhaustion and potential reversal pressure. The recent failure to break above confirms the zone’s strength.
🔴 EMA Confluence:
🧭 50 EMA (red): ~1.1242
🧭 200 EMA (blue): ~1.0961
The price is currently hovering just above the 50 EMA but well above the 200 EMA, which is acting as a dynamic support. The crossover has already occurred, so if price breaks below the 50 EMA decisively, momentum could shift bearish.
🔻 Support Breakdown Risk:
A breakdown from the 1.1200 neckline area (highlighted in red oval) would confirm the double-top pattern 🎯. That opens downside potential toward the strong demand zone below.
🟪 Strong Support Zone:
📍 1.0700 – 1.0800
This area aligns with prior consolidation (March lows) and the 200 EMA, making it a high-probability reversal zone 📈 if the bearish scenario plays out.
📌 Trade Setup Insight:
✅ Bearish confirmation below 1.1200 neckline 📉
🎯 Target: 1.0800 zone
❌ Invalidation: Break above 1.1350 resistance
🔵 Summary:
The chart is hinting at a classic double-top reversal below a key resistance zone. If price breaks the neckline, sellers are likely to gain control, targeting the strong support near the 200 EMA.
📊 Bias: Bearish 👇
📅 Timeframe: Daily
🛑 Risk Management: Watch for fake-outs near neckline; volume confirmation preferred.
