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EUR/USD Trading Near Double Top Support

The EUR/USD has been choppy but bullish in 2014, barely making a new high on the year at 1.3993 last week. Traders were quick to fade EUR/USD below 1.40, especially after last Thursday's relatively dovish ECB press conference. 

(eurusd daily chart)

Double Top Support:
This week, EUR/USD continued to slide, and is now near a double top support of 1.3672 as seen in the daily chart. 

To me a double top development is overrated if you believe it signals a bearish reversal. It does reflect consolidation, but in consolidation, the bias is the prevailing trend, so the bias remains bullish even if the double top is complete.

The pullback will provide more information if the market does break below the double top support. Look for a rally when:
1) RSI dips around 30 and turns back up
2) Price bounces off the 200-day SMA, which is around 1.3625 at the moment.

If this pullback for example stalls below 1.39 and the EUR/USD starts falling, we will have more reason to believe the double top is in place, and a significant bearish correction is developing.