Bear Flag Update: E/U, A/U and Kiwi by Mary McNamara

There have been Bear Flag patterns setting up on the E/U, A/U and Kiwi for some weeks now and the daily candle close today suggests that one of them might be underway.

E/U: the E/U has a 1,000 pip Bear Flag brewing and, after already breaking the Bear Flag trend line, another key support level of 1.25 has now been broken as well. There is a lot of high impact news this week for the E/U and ECB interest rate news on Thursday will be a major focus. Price may not stray too far from this major 1.25 level until then but, in theory, the daily close below 1.25 is bearish and suggests continuation:


A/U: the Bear Flag trend line has broken here now as well but I would prefer to see a daily close below the major 0.865 level before considering this Bear Flag is underway. There is a lot of high impact data for the AUD today with Retail Sales, Trade Balance and Interest Rate news. Watch for any daily close below 0.856 to confirm the Bear Flag:


Kiwi: the Kiwi is a bit more tricky as the pattern here could be viewed as either a Bear Flag or a Bullish Wedge! Thus, the 0.77 support level and wedge trend line will be key regions to watch. A close and hold below 0.77 would support the Bear Flag idea though:


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