EUR/USD: "double bottom" led to the correction
There was a flat, which finally was ended by the bullish rally towards a resistance at 1.1217. Previously, a reversal “Double Bottom” pattern has been formed. It’s likely to see the market lower in the short term. The target support is an area between the 34 Moving Average and the level at 1.1156. If a pullback appears somewhere from here, then we will have an opportunity to see a rise towards a resistance area at 1.1245 – 1.1273.
As we can see on the one-hour chart, the last “Pennant” was finally ended up by the upward movement. The price faced a resistance at 1.1217, which led to the current decline. It’s likely that the market is going to reach a support at 1.1157. If bears be stopped here, then bulls will probably try to achieve a resistance area at 1.1217 – 1.1237.