I seldom trade USD pairs, but FED Yellen is speaking on Wednesday and I always trade USD when she speaks. The pair finished 2016 strongly, rallying 1,750 pips between the November 9th US elections and December 15th. But so far this year, the pair has lost 600 pips. Recent price action suggests that a near-term bottom is in place. The two swing lows between January 17th and the 24th hint at a double bottom pattern. What’s nice about this formation is that the distance from the two lows to the neckline is almost the same as the distance from the neckline to the objective.
The distance from the neckline to the double bottom is approximately 304 pips while the distance from the neckline to the measured objective is 300 pips. Watch for a H4/Daily close above the January 19th high at 115.60. Such a close would confirm the reversal pattern and expose the objective at 118.60.