- EUR / USD hits a high of 1.1920 in Asia.
- The breakout of the bullish flag suggests possibilities for further gains.
EUR / USD surged above 1.1910 during Asian trading hours on Monday, triggering a bullish break of the flag on the 15-minute chart.
A flag is a continuation pattern – it speeds up the previous movement. The currency pair fell from 1.18 to 1.1920 in August. 28 before forming a flag.
The breakout therefore indicates a continuation of the rally from lows close to 1.18.
The model created room for a rally at 1.20 (target according to the measured displacement method).
The immediate bias would turn bearish if the pair fell below 1.19, reversing the breakout of the bullish flag and shifting attention to the 5-day simple ascending moving average, currently at 1.1860.