GOOD AFTERNOON STEEMIT!
After the USDX dropped as low as it did, EUR/USD ripped higher through the channel resistance that we have been following on Twitter. The pair was however, unable to break through the following level of higher time frame resistance which I've marked with the top line on my weekly chart.
From here, price has started to move back downward. But in moving back down, EUR/USD is starting to form what looks like a bull flag on both of the higher time frame charts that I've featured here.
First up, I've taken a look at the weekly chart below:
EUR/USD Weekly
With lower highs and lower lows forming the trend lines on each side, you can see the bull flag pattern that I'm talking about pretty clearly. As we're on the higher time frame chart, this is the signal to start to look for longs.
Now with that long bias in mind, take a single step down to the daily chart and look for some levels to manage our risk around. One in particular here:
EUR/USD Daily
The horizontal zone is from the weekly that you can see in the first chart, and the short term (relatively) previous resistance level is what I'm looking to act as support.
Depending on price action if the pair does continue to flag and pull back down to this daily level, it's an excellent level to look at managing risk around for a long. Having the swing low and the bottom of the flag/channel just under it gives further confidence in the level.
Peace.
Please leave a comment with your ideas or just share a chart.
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