Forex Blog

Following a successful bearish pennant setup that had appeared on the daily timeframe of the EUR/AUD chart, the currency pair entered another consolidation that took the shape of a continuation bearish flag pattern. Now, a pronounced close below the lower border of the formation may signal a further weakness of the euro against the Australian dollar.

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 peak of the consolidation area. My potenial take-profit level is shown with green horizontal line. I will trade only in sell direction here, and only if a candle closes well below the flag’s lower border.

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

Update 2021-01-11 9:18 GMT: I have canceled this setup as the chart had gone up, invaliding the bearish flag pattern:

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