USD strength accelerates after EUR/USD bearish flag complete | Don’t ignore this chart!
key
gist
- EUR/USD executes a bearish flag formation.
- As a result, it breaks the rising support line and breaks out of the uptrend channel.
After rebounding from $1.045 to a high of $1.1140 in October-December 2023, the EUR/USD exchange rate has now formed a bearish signal, accelerating its decline (USD’s strength). As a result, the pair has now also fallen below the trendline support, adding to and confirming the bearish outlook for the coming weeks.
Depending on the flag formation, you can calculate a target price between $1.0650 and $1.0700. This area coincides with the horizontal (green shaded) support zone that has provided support and resistance for the past 8-9 months.
The upside potential for EUR/USD is now limited as the lows of previous support levels and flags are expected to act as resistance overhead.
Julius de Kempenaer
Senior Technical Analyststockchart.com
creatorrelative rotation graph
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owner of: Spotlight by sector
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Julius de Kempenaer is the creator of Relative Rotation Graphs™. This unique way to visualize relative strength within the world of securities was first launched on the Bloomberg Professional Services Terminal in January 2011 and made public on StockCharts.com in July 2014. After graduating from the Royal Netherlands Military Academy, Julius served in the Dutch army. Airmen of various officer ranks. He retired from the military in 1990 with the rank of captain and entered the financial industry as a portfolio manager at Equity & Law (now part of AXA Investment Managers). Learn more
