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Rises back to 1.08, potential double bottom on 1H

  • EUR/USD looks to be creating a double bottom pattern on the hourly chart. 
  • A break above 1.0836 is needed to confirm a price breakout. 

The American dollar is losing ground in Asia amid the uptick in the US stock futures, helping EUR/USD recover early losses. 

The pair is currently traded near 1.08, having jumped from 1.0785 to 1.0802 in the 60 minutes to 00:00GMT. The futures tied to the S&P 500 index are up 0.5% at press time and pointing to a continuation of Monday’s 7% price rally. The signs of risk reset will likely continue to weigh over the safe-haven US dollar. 

Double bottom in Euro

The pair has defended the area around 1.0770 two times since Friday. The hourly chart shows a double bottom pattern with the neckline resistance at 1.0836 is likely in the making. 

A break above 1.0836 would confirm a double bottom breakout and open the doors to 1.09 (target as per the measured move method). 

Alternatively, acceptance under 1.0770 would invalidate prospects of a double bottom breakout and could yield another leg down toward 1.0750. 

Hourly chart

Trend: Bullish above 1.0836

Technical levels

 

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