The euro posted modest gains on Friday as price action settled near March 13 highs of 1.1329, forming a double top pattern. The gains came as final inflation figures for February showed that consumer prices rose 1.5% on the headline. Meanwhile, core CPI rose 1.0% as seen from the flash estimates a few weeks ago.
EURUSD could extend lower
If the current double top pattern is validated, then a break down below 1.1289 could trigger declines in the common currency. The minimum downside objective is at 1.1268, but price could extend lower to retest support near 1.1251 level. This comes as various oscillators are singling a hidden bearish divergence giving support to the downside move.
