EUR/USD Price Analysis: Drops below 1.09 as double top forms, threatening to negate a triple bottom

The Euro (EUR) drops from around weekly highs of 1.0925 on a buoyant US Dollar (USD) and on buyers’ failure to crack the YTD high at 1.0929. Neverthel  |  31/03/2023 22:41

• A triple bottom in the EUR/USD daily chart remains in play but at a brisk of being negated.
• EUR/USD’s price action during the last couple of weeks created a double top, which could shift the pair’s bias.

The Euro (EUR) drops from around weekly highs of 1.0925 on a buoyant US Dollar (USD) and on buyers’ failure to crack the YTD high at 1.0929. Nevertheless, a triple bottom in the daily chart is intact, at the brisk of being negated. At the time of writing, the EUR/USD is trading at 1.0842.

EUR/USD Price action

Failure to hold prices above the 1.0900 figure has exposed the EUR/USD to further selling pressure. A triple bottom in the daily chart remains in play. But, the upward movement was capped at around March’s 23 high of 1.0929, ahead of testing 1.1000.

For a bullish resumption, EUR/USD buyers must reclaim 1.0900, followed by 1.0929. Break above will expose the 1.1000 figure, followed by the YTD high at 1.1032.

Another scenario has developed in the last couple of weeks. Albeit a “triple bottom” is in place, the formation of a double top emerged. Hence, if the EUR/USD continues to dive further and achieves a daily close below the March 24 swing low of 1.0713, it would pave the way to test 1.0500.

Backing up the latter scenario are oscillators. The Relative Strength Index (RSI), although at bullish territory, its slope turned downwards, while the Rate of Change (RoC) shifted neutral.

EUR/USD Daily chart

EUR/USD Technical levels