EUR/USD: another Bear Flag? by Mary McNamara

The E/U is consolidating within a triangle pattern on the 4hr chart but this is giving the daily chart a distinctly ‘Bear Flag’ appearance.

 E/U 4hr: consolidating within a triangle and getting close to make or break time as it nears the apex. Watch for any breakout with increasing momentum:

EU4

E/U daily: a ‘Bear Flag’ appearance developing here:

EUdaily

E/U 4hr Cloud: price action is stuck in the congestion of the 4hr Cloud for now:

EU4hrCloud

E/U daily Cloud: there is some room before it reaches the daily Cloud though:

EUdailyCloud

Much will depend on which way the USD heads form here though and, also, on the outcome of Eurogroup Greek debt negotiations:

USDX daily: there is a bearish ‘Double Top’ in play but this chart also has a bit of a ‘Bull Flag’ look to it. I’m watching the 95.50 resistance and 92.50 support levels for clues here:

USDXdaily

USDX 4hr: the ascending triangle is helping to give this the Bull Flag appearance:

USDX4

Summary: watch for any trend line breaks on the E/U 4hr chart for clues about the next directional move. Trigger events for breakout movement include FOMC news and Eurogroup Greek debt talks.

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