EURUSD: BULLISH FLAG PATTERN & DESCENDING TRIANGLE ON DAILY !!!
Diupdate
Hello Traders,
EURUSD has been consolidating for the past 6 weeks, which resulted in Bullish Flag Pattern formation on the daily time frame. The upper portion of the flag pattern is a really strong resistance level since the market has been rejected from that level 9 times. Thus we need a really strong bullish breakout from this level in order for eurusd to go higher. I have listed the key high impact news events that are most likely to affect the EURUSD early tomorrow morning on the chart above. We might get the strong upside breakout from one of these events by early tomorrow morning OR the events might also take us in the opposite direction, to the downside. Do pay very close attention to these events as we look to trade based on this bullish flag pattern. Keep in mind that since this is a daily time frame based setup; we need to see a daily break and close above the strong resistance level before entering into the long setup. You don’t want to be caught on the wrong side of the market, especially with the amount of new events coming up pretty soon.
I have labelled 3 potential targets; initial target is a minor one since the trend line has not been tested yet. 1st & 2nd targets are major ones since flag pattern completes at the 1st target level and the 2nd target is a strong rising trend line, which has been tested at least 5 times. The stop would go just under the 50 day moving average (magenta color line) for the long setup. For the short setup, the stop would go above the upper portion of the descending triangle (yellow falling trend line).
Do note that we also have formed a Bearish Descending Triangle within the bullish flag pattern. The breakout that we got earlier was a false breakout since we never got a valid retest of the broken level and thus the pattern would still be considered valid. So if we get a break and close below this triangle pattern then we might be able to enter into a short trade.
KEY NOTE #1: ECB maintained its interest rate @ 0.05%. Need to pay attention to the press conference, which is coming up in 30 mins from now.
Please feel free to AGREE or DISAGREE with this idea by leaving a comment below. Hit that thumbs up button (top left corner of this chart) if you like the idea. Thank you everyone for all the SUPPORT that you have given me so far, I truly appreciate it. Good luck everyone :)
Follow me on Twitter as well: moneymaking2016
EURUSD has been consolidating for the past 6 weeks, which resulted in Bullish Flag Pattern formation on the daily time frame. The upper portion of the flag pattern is a really strong resistance level since the market has been rejected from that level 9 times. Thus we need a really strong bullish breakout from this level in order for eurusd to go higher. I have listed the key high impact news events that are most likely to affect the EURUSD early tomorrow morning on the chart above. We might get the strong upside breakout from one of these events by early tomorrow morning OR the events might also take us in the opposite direction, to the downside. Do pay very close attention to these events as we look to trade based on this bullish flag pattern. Keep in mind that since this is a daily time frame based setup; we need to see a daily break and close above the strong resistance level before entering into the long setup. You don’t want to be caught on the wrong side of the market, especially with the amount of new events coming up pretty soon.I have labelled 3 potential targets; initial target is a minor one since the trend line has not been tested yet. 1st & 2nd targets are major ones since flag pattern completes at the 1st target level and the 2nd target is a strong rising trend line, which has been tested at least 5 times. The stop would go just under the 50 day moving average (magenta color line) for the long setup. For the short setup, the stop would go above the upper portion of the descending triangle (yellow falling trend line).
Do note that we also have formed a Bearish Descending Triangle within the bullish flag pattern. The breakout that we got earlier was a false breakout since we never got a valid retest of the broken level and thus the pattern would still be considered valid. So if we get a break and close below this triangle pattern then we might be able to enter into a short trade.
KEY NOTE #1: ECB maintained its interest rate @ 0.05%. Need to pay attention to the press conference, which is coming up in 30 mins from now.
Please feel free to AGREE or DISAGREE with this idea by leaving a comment below. Hit that thumbs up button (top left corner of this chart) if you like the idea. Thank you everyone for all the SUPPORT that you have given me so far, I truly appreciate it. Good luck everyone :)
Follow me on Twitter as well: moneymaking2016
Catatan
UPDATE #1: Hello Traders, both the bullish flag pattern and the bearish descending triangle are still valid after today's daily close. We never got any type of breakout in either of the patterns.Catatan
UPDATE #2: Another false breakout in descending triangle pattern. Waiting for bull flag pattern to be broken :)Catatan
UPDATE #3: Hello Traders, we did get a strong breakout to the upside in the bullish flag pattern. However, we are currently up against strong resistance level and also we have CPI Flash Estimate y/y news coming out early morning @ 5 AM. So be conservative and if you do want to be involved than I would recommend lowering your regular position size by half. All the Best everyone :)Catatan
UPDATE #4: Hello Traders, the breakout that we got earlier in the bullish flag pattern was indeed a false one. Thus, both patterns are still valid, need to wait for a valid retest AFTER the breakout, which we haven't gotten yet.Catatan
UPDATE #5: Minor target reached.Catatan
UPDATE #6: 1st Major target achieved. That completes the bull flag pattern long trade setup :)Catatan
UPDATE #7: Market currently testing the previously broken valid trend line.Catatan
UPDATE #*: All targets reached. Flat on this pair. Looking for entries to short it :)
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