The EUR/USD pair settled higher in latest intraday trading and retested the pivotal resistance of $1.0820, which represents the neckline of a negative technical pattern that’s forming in the short term, the Double Top pattern, which is decisive in determining the upcoming direction.

 

Despite the latest gains, the price is still dominated by a downward correctional trend as it continues to trade below the 50-candle SMA, with selling pressures bolstered even further by a forming negative divergence in the Stochastic after reaching overbought levels compared to the price’s movements, sending out negative signals.