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Bullish Flag and Pennant on AUD/USD and NZD/USD Weekly Charts

February 7, 2021 (Last updated on February 15, 2021) by

Two very similar chart patterns have become evident on the weekly charts of two closely related and correlated currency pairs — AUD/USD and NZD/USD. The trades should be approached with caution as taking them both doubles your risk exposure to the US dollar appreciation. This is even more dangerous for my own situation as I am already bearish USD via EUR/USD and USD/CHF pairs.

On the chart screenshots below, you will see the yellow lines marking the patterns (the flag and the pennant) themselves — the poles and the consolidation areas’ borders. The stop-loss levels of my pending orders are marked with red horizontal lines. The take-profit levels of my expected trade setups are shown with green horizontal lines.

AUD/USD — Bullish Flag

This Forex pair is demonstrating a stable uptrend since March 2020. The recent consolidation took form of the flag pattern and can be used for a bullish breakout trade.

AUD/USD - Bullish Flag Pattern on Weekly Chart as of 2021-02-07

You can download a chart template for MetaTrader 4 for this AUD/USD pattern.

Update 2021-02-15: As the previous week had closed well above the upper border of the flag, a long position was opened today at midnight GMT. The entry price is 0.77639 with stop-loss at 0.75630 and take-profit at 0.83924:

AUD/USD - Bullish Flag Pattern on Weekly Chart as of 2021-02-15 - Post-Entry Screenshot

NZD/USD — Bullish Pennant

The long-term behavior of NZD/USD is very similar to that of its Australian counterpart, but the current consolidation took the form of a bullish pennant rather than a channel.

NZD/USD - Bullish Flag Pattern on Weekly Chart as of 2021-02-07

You can download a chart template for MetaTrader 4 for this NZD/USD pattern.

Update 2021-02-15: Similarly to the AUD/USD flag, a close above the upper border prompted a buy trade today at midnight GMT. The entry price is 0.72186 with stop-loss at 0.70826 and take-profit at 0.78088:

NZD/USD - Bullish Flag Pattern on Weekly Chart as of 2021-02-15 - Post-Entry Screenshot

Both pattern setups can be traded using my free Chart Pattern Helper EA.

If you have any questions or comments regarding these flag and pennant patterns on the AUD/USD and NZD/USD charts, please feel free to post them via the form below.

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