- EUR / USD creates a bearish flag on the 4 hour chart.
- A flag failure would result in additional losses.
EUR / USD is currently sidelined near 1.0820, after facing near 1.09 rejection on Wednesday.
The recent side action in the range of 1.0750-109 has taken the form of a bear flag – a pause that usually refreshes below.
Acceptance under the lower end of the bearish flag at 1.08 would imply a resumption of sales from the May 1 high of 1.1019 and a risk of a shift in favor of deeper declines at 1.0547 (target using the measured movement method).
The outlook would turn bullish if the upper end of the 1.09 flag is crossed. This would open the doors for a new test of 1.1019.
4 hour chart