EUR/USD 4H Chart: Double Bottom

Source: Dukascopy Bank SA
© Dukascopy Bank SA
The shared currency began with its latest downward trend versus the Greenback during the second week of October. However, after reaching this year's low at 1.2358, the Euro stabilized, which led to formation of the double bottom pattern. The pair is currently capped by the long-term downtrend, which is strengthened both by 200-period SMA and weekly R1. Therefore, we expect the currency to consolidate towards 1.23. Despite a strong demand area just above this level (weekly and monthly R1), technical studies forecast the pair to set a new  annual minimum in course of December. Market sentiment, in turn, is completely undecided (50% longs / 50% shorts).
© Dukascopy Bank SA
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