EURUSD UPDATE: Possible Double Top on EURUSD Daily Chart

[RTFX-Trading]

EURUSD UPDATE: Possible Double Top on EURUSD Daily Chart

The EURUSD looks set to confirm the formation of a Double Top on its daily chart. After reaching a high at 1.5063 on 26th October, the prices failed to reach these levels again, and upside rallies were capped at 1.5048 on November 11th and 1.5016 on the 16th of November.  We are now looking for a test of the 50 day SMA which is today at 1.4784. A close below this would set the stage for further declines towards 1.44 - 1.45. This bearish view is also confirmed by the negative divergence on the RSI Oscillator on the daily graph. A longer term bearish view on the EURUSD is further confirmed by the bearish engulfing pattern on the EURUSD Weekly graph on Week44 (see EURUSD UPDATE of 3/11/09). A break and close above 2009 high of 1.5063 would end this bearish view for the medium term.



Emman Xuereb
RTFX Ltd
Head Office
The Cornerstone Complex, 16th September Square | Mosta MST 1180 | Malta
Tel:  +356 23 31 00 00
Fax: +356 21 41 24 58
Web: www.rtfx.com
Risk Disclaimer