Aug 11 (Reuters) - EUR/USD is flashing warning signs after Monday's session saw the price stall at 1.1580 on EBS — a pip below Friday's peak.

The repeated highs form a double top pattern within an otherwise short-term bull trend. That formation alone is enough to put traders on alert for a potential reversal, but the technical backdrop is adding further weight to the bearish case.

The pair's failure to sustain a break above both the daily cloud top (1.1561) and the 100-day moving average (1.1567) is compounding the risk. Momentum readings aren't helping either, with the 14-day gauge beginning to lose its positive edge and the daily Relative Strength Index turning lower.

Overhead, resistance looms at 1.1587 — the 50% Fibonacci retracement of the April-June slide from 1.1849 to 1.1325 — while the 200-day moving average, which has kept a lid on the market since May 15, sits at 1.1630.

The 20-day moving average and daily Ichimoku cloud base provide downside targets at 1.1467 and 1.1447, respectively.
EUR/USD daily chart:


(Peter Stoneham is a Reuters market analyst. The views expressed are his own)