Euro breaks through a positive pattern's ceiling. - technical analysis - 21-12-2015

EUR/USD kept rising in the intra-day levels, breaking through the simple moving average for the last 50 hours period, which helped it rise even more, breaching the resistance level of 1.0868, which represents the ceiling of a positive technical pattern that formed previously in the intraday levels, which is the double bottom pattern as shown in the attached chart; noting that relative power indicators have reached extremely oversold levels that aren't consistent with the price's upward movements, which is a positive signal.

 

Therefore we expect the pair to rise further, targeting the resistance of 1.0930 as a price target for this forming double bottom pattern.