Euro vs US dollar forms flag pattern under key resistance
James Chen January 2, 2013 9:17 PM
<p>EUR/USD (daily chart) as of January 2, 2013, has once again bumped up against key resistance around the important 1.3300 price region, a level that […]</p>
EUR/USD (daily chart) as of January 2, 2013, has once again bumped up against key resistance around the important 1.3300 price region, a level that the price has not been able breach for the last nine months. For two weeks since late December, the price has consolidated just under this 1.3300 level, forming a flag-like chart pattern consolidation. This occurs within the context of both a longer-term bullish trend extending back to the July 1.2041 low, as well as a shorter-term bullish surge that began three weeks ago and broke out above several important resistance levels. With the price having formed a bull flag pattern under 1.3300, a breakout above this level could move towards further potential resistance to the upside around 1.3500, thereby confirming a continuation of the entrenched bullish trend.
To the downside, short-term potential support resides around the 1.3170 price region, a prior support/resistance level as well as the approximate lower border of the flag pattern.