- EUR/USD hits a high of 1.1920 in Asia.
- The bull flag breakout suggests scope for further gains.
EUR/USD jumped above 1.1910 during Monday's Asian trading hours, triggering a bullish flag breakout on the 15-minute chart.
A flag is a continuation pattern – it accelerates the preceding move. The currency pair rose from 1.18 to 1.1920 on Aug. 28 before forming a flag.
The breakout, therefore, indicates a continuation of the rally from lows near 1.18.
The pattern has created room for a rally to 1.20 (target as per the measured move method).
The immediate bias would turn bearish if the pair falls back below 1.19, invalidating the bull flag breakout and shifting the focus to the ascending 5-day simple moving average, currently at 1.1860.
Daily chart
Trend: Bullish
Technical levels
Reprinted from FXStreet，the copyright all reserved by the original author.
Disclaimer: The views expressed are solely those of the author and do not represent the official position of Followme. Followme does not take responsibility for the accuracy, completeness, or reliability of the information provided and is not liable for any actions taken based on the content, unless explicitly stated in writing.
Like this article? Show your appreciation by sending a tip to the author.
Leave Your Message Now