The EURUSD formed a potential double top after the FOMC decided to taper their asset purchases by $10B a month , the pair fluctuated around 1.3700/800 levels , It rose towards 1.3810 , then made a massive decline towards 1.3648 levels , however ; the pair almost made a double top formation , the daily %R (Williams) is negative, so this scenario suggests that big reversal might be on the way , so pay attention for these technical notes :
- As long as 1.3810 holds, the pair will remain under pressure with risk to the downside.
- A failure to hold below 1.3673 on a daily basis could mean a return to the 1.3770/810 levels.
- A daily close back above 1.3810 will extend gains towards the psychological level 1.4000 ahead of 1.4280.
- A daily close below 1.3673 will confirm double top formation and open 1.3613 , 1.3556 , 1.3505 levels.
- Buyers will try to back to market around 1.3613 – 1.3556 ahead of 1.3500 ( main ).
- Losing 1.3500 on a daily basis would bring a free fall towards 1.3323/1.3173 levels.