EUR/USD Bull Flag

Discussion in 'Forex' started by DannyBly1, Jul 2, 2008.

  1. Looking at the daily EUR/USD chart we can see a bull flag has formed.

    Bull flags are defined by lower tops and lower bottoms, with the pattern slanting against the trend.

    Price is currently pressed right up against the upper flag trend line. The bull flag is a continuation pattern - suggesting that if price can break out to the upside, the uptrend (reflected in the mast of the flag) will continue -

  2. Had a nice drop off the median for the 50% and

    61.8% fibs levels as support before going lower
  3. news flash - it's not going to break out to the upside. Countries across Europe are going to be facing recession soon, and crude oil prices aren't going to go down just because of a stinking 25 bp hike by the ECB. America is sorting its crap out, and you will see the dollar re-test the 1.53 area in the next month or two.

    That is unless someone invades Iran.