31 Aug 2020
EUR/USD Price Analysis: Flag breakout on the 15-minute chart
- EUR/USD hits a high of 1.1920 in Asia.
- The bull flag breakout suggests scope for further gains.
EUR/USD jumped above 1.1910 during Monday's Asian trading hours, triggering a bullish flag breakout on the 15-minute chart.
A flag is a continuation pattern – it accelerates the preceding move. The currency pair rose from 1.18 to 1.1920 on Aug. 28 before forming a flag.
The breakout, therefore, indicates a continuation of the rally from lows near 1.18.
The pattern has created room for a rally to 1.20 (target as per the measured move method).
The immediate bias would turn bearish if the pair falls back below 1.19, invalidating the bull flag breakout and shifting the focus to the ascending 5-day simple moving average, currently at 1.1860.
Daily chart
Trend: Bullish