EUR/GBP Formed a Double Top at 0.8750

EUR/GBP has been moving to the upside for three weeks now, but it seems that the rally will stall at least temporarily, because the pair formed a very telling double top at the resistance at 0.8750 which is obvious on the four-hour time-frame. What is more, EUR/GBP has also formed a hanging man candlestick at the same four-hour time-frame, also at the resistance at 0.8750. Both are good signals for an impending move to the downside and should those signals prove valid there will likely be a drop towards the last low at 0.8655. A breakout below that support could lead to a further move to the downside towards 0.8620, which is the (MA)89 indicator on the four-hour time-frame.

Silver Is at a Crossroads

Silver broke out above the resistance at 17.20 last week and slowly continued moving to the upside, eventually forming a new high at 17.46, after which the precious metal started moving sideways and as a result it formed a hanging man candlestick above the resistance at 17.31, which coincides with the (MA)89 indicator on the daily time-frame. Because the hanging man candlestick is above the indicator, rather than below it, it is a rather dubious signal for an impending move to the downside. If it does occur and Silver does break out below 17.31, there could be a further drop towards 17.00 again. On the other hand, if the hanging man candlestick proves to be a false signal then there could be a further move to the upside towards 17.50 – 17.60.

EUR/JPY Has Formed a Double Top

EUR/JPY has been gradually moving to the upside for the past few weeks, but that movement appears to have finally ended, because the pair formed a pair of very telling signals for an impending reversal. Namely, EUR/JPY reached the resistance at 125.80 and tested that level twice over the course of several days, forming a clear double top. What is more, the pair has also formed an obvious doji candlestick on the weekly time-frame. Currently the pair is testing the support at 124.15 and considering those signals for a move to the downside it will likely break out below that level. If it does, the closest target is the previous low at 122.55. A breakout below that level will probably lead to a further move to the downside towards 121.20, which is the (MA)89 indicator on the daily time-frame.