EURUSD: Price Formed a Double Top in 1H Chart, Heading Lower

EURUSD has been moving in a long-term bearish trend and recently reached a new low at the 1.03500 level. From the support area, the price nicely retraced, forming a bearish flag channel. Yesterday, the price has reached 1.07500 level, making a 400-pip retracement from the bottom. In the one-hour chart, we can see the price has formed a double top pattern, breaking and retesting the neckline before falling lower to test the support level of 1.0690. We expect a short-term bearish movement back to the 1.0650 support level.

We do expect that at least one more retest of previous low of 1.0350 is needed before a long-term trend change can take place.