Good afternoon traders,
After benefiting from USD weakness and ripping higher though channel resistance, EUR/USD was unable to break the next level of higher time frame resistance and has started to slowly edge back down.
But in edging back down, the pair is starting to form what look awfully close to a bull flag on the higher time frame charts. Take a look at the weekly here below:
The single lower high and lower low that you can see connecting each trend line, has at least started to print the bull flag and given us at least some basis to start to look for longs.
As the above is forming on a weekly and still unfolding, I don’t want to zoom in too far, so I’m only going down to the daily. Check out the levels I’m looking at below:
Mostly I want you to focus on the horizontal zone and then the short term (relatively) previous resistance level that we will be looking to act as support.
If it does in fact turn out this way, this is an excellent level to look at taking a long position off of, and most importantly allows you to manage your risk around the swing low just underneath.
Best of probabilities to you!
Dane Williams – Vantage FX
Risk Disclosure: In addition to the website disclaimer below, the material on this page prepared by Vantage FX Pty Ltd does not contain a record of our prices or solicitation to trade. All opinions, news, research, tools, prices or other information is provided as general market commentary and marketing communication – not as investment advice. Consequently, any person acting on it does so entirely at their own risk. The expert writers express their personal opinions and will not assume any responsibility whatsoever for the forex trading account of the reader. We always aim for maximum accuracy and timeliness, and Vantage FX shall not be liable for any loss or damage, consequential or otherwise, which may arise from the use or reliance on this service and its content, inaccurate information or typos. No representation is being made that any results discussed within the report will be achieved, and past performance is not indicative of future performance.
Source: Vantage FX Blog