A pair of topping patterns cap two formerly high-flying FX trades

Technical Analysis

Author: Adam Button | eurusd

EUR/USD and NZD/USD flashing red

EUR/USD chart

On Monday, I wrote this about the euro:

I can certainly see the chart as a top but we need a drop below 1.17 to confirm it. Until then, this may just be another blip in the radar.
Well here we are at 1.1683 and nothing but risk aversion and dollar strength across the board. Today's Eurozone services PMIs certainly don't help the euro's case.

The bigger story is USD strength and you can get confirmation in the NZD/USD chart. It's been one of the better performers since the pandemic low and this certainly looks like a double top, with the confirmation on the break of 0.6600.

The bulls can still hold out hope that 0.6489 August low holds and I hate to call a trend change until it's definitive but the USD is sure making a strong case.
NZDUSD chart
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