By Russell Glaser – This week the EUR/USD broke through a key support level, completing a double bottom pattern on the daily chart. This will set a new short term price forecast for the euro.
The EUR/USD moved as high as 1.3690 following the release of the EU bailout package for Greece. In the process, the EUR/USD completed a double bottom reversal pattern.
The two bottoms rest at the lows of March and April, with the top forming near the downward sloping trend line at a price of 1.3590.
To find the potential appreciation from this price pattern, we will measure the distance from the two lows to the top of the pattern. This measures roughly 300 pips. The 1.3900 price level should now serve as the next price target in the near term.
Forex Market Analysis provided by Forex Yard.
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