The shorter-term moving averages on the daily charts are spooling up, suggesting a larger move lays ahead in the coming weeks. Combined with signs that EUR/USD is trying to put in a “rounding bottom” on the daily charts, trend followers will closely watch for a cross of the 10-day moving average (today at 1.3599) and the 21-day moving average just above at the 1.3620 level.
In the shorter-term, a move above the 1.3705 level would trigger my favorite pattern, the double-bottom (from 1.3530/37), suggesting a rally to 1.3870 or so..
If the short-term pattern plays out, odds are the longer one will too. Below 1.3530, the souble bottom will be defunct.
