EURUSD Flag Breakout – Intra-day Price Action Update – 8th February
- Our last update noted that the EURUSD pair was trading close to the prior resistance area around 1.3390, and that this area had the potential to subsequently act as support.
- Price then moved as high as 1.3428, and through our first potential trouble area target of 1.3412.
- The euro/dollar bulls were unable to push price higher this morning and the intra-day price action has now seen a breakout of the EURUSD flag pattern as per the M15 euro/dollar chart below.
- The initial breakout of this flag continuation pattern resulted in a swift reversal near the London open. However, the second move under trend-line support had the pair drop around 38 pips before retracing; the retest has now seen the EURUSD plunge to new lows for the day as the week draws to a close.
- The flag pole is around 200 pips deep, therefore conventional technical analysis projections – which are often to be taken with a pinch of salt – have the flag “target” around 1.3200.
Technical Analysis, Flag pattern Breakout, Forex Price Action