EUR/USD is trading at 1.1790, showing signs of exhaustion in its upward momentum. Hence, a technical correction is expected in the coming days, which could reach the 200 EMA around 1.1670.
On the H4 chart, we can see that the euro has formed a double top pattern, which could mean a strong technical correction in the coming days.
If the euro price consolidates above 1.1800, we could look for opportunities to buy, and the euro could reach 1.1840.
The euro could encounter strong resistance around 1.1840 or 1.1800. A move below both levels could be seen as a signal to open short positions, and the euro is expected to reach the psychological level of 1.1500 in the medium term.
Our outlook will be bearish, and as long as the euro trades below the double top pattern, we will target 1.1779, 1.1756, where the 21SMA is located, 1.1718, and finally 1.1670.
