By Russell Glaser – The daily chart displays a bearish flag pattern has formed. This is a continuation pattern in what may be a larger move lower for the EUR/USD.
This flag pattern takes place in a well defined bearish channel that began at the start of the EUR/USD bearish streak in December.
Below the daily chart shows a bearish flag has formed, beginning with the sharp depreciation of the pair when the price broke lower from the long term trend line on March 17th. The lower border of the flag pattern begins on March 25th at the swing low of the chart and the upper channel line forming on March 28th. The flag pattern is sloping upwards, the opposite direction of the long term trend.
To measure the potential price move of the flag pattern, we can take the measurement of the flagpole and project down from a break of the lower line on the flag. This would be roughly 500 pips.
Forex Market Analysis provided by Forex Yard.
© 2006 by FxYard Ltd
Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.
