Forex Blog

The EUR/USD currency pair has been trading in a strong uptrend since March 2020. Noticeable on the weekly timeframe chart are two previous consolidations that had been followed by trend continuations: a bullish pennant in July and a bullish flag in September-October. Both resulted in strong bullish legs for the FX pair. The current consolidation has started in late December and is now ripe for a breakout.

On the chart screenshot below, the pattern’s borders and its pole are shown using the yellow lines. The stop-loss level is marked with the red horizontal line and lies on the low of the spike down (1.19517) inside the consolidation area. My potenial take-profit level is shown with the green horizontal line, which is positioned at the pole’s height added to the lowest level of the pattern’s flag part. I will trade only a bullish breakout here and only if a candle closes well above the flag’s upper border.

You can download a chart template for MetaTrader 4 for this EUR/USD pattern. You can trade it using my free Chart Pattern Helper EA.

Update 2021-03-08: Trade setup cancelled due to pattern invalidation by the bearish price action.

If you have any questions or comments regarding this bullish flag on the EUR/USD chart, please feel free to post them via the form below.