Charts in Focus – EURUSD Bear-flag, GBPUSD Wedge
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EURUSD triggers bear-flag on 4-hr chart
On the top-side, the Euro looked like it might want to trade up to trend-line resistance before turning back lower, however; the bear-flag on the 4-hr was triggered this morning, undermining any bullish momentum the Euro had left.
This has the trading bias tilted in favor of shorts as long as we don’t see a recovery back inside the flag and above today’s high at 11304. With volatility as low as it is, rivaling depths not seen since 2014, the move lower might not be very big.
On trade down to the recent lows near 11180 we could see buyers step in again and keep the Euro supported. This doesn’t leave a lot of room for a swing-trade, but the trading bias for near-term bets between here and there favors sellers.
EURUSD 4-hr Chart (Bear-flag broke)
EURUSD Daily Chart (watch support sub-11200)
GBPUSD nearing wedge break
Last week, I highlighted GBPUSD as a set-up to pay attention to as it nears the apex of a wedge its been building. It is very near breaking. A close above the top-side trend-line will indicate a bullish bias and a break below 12904 will turn things bearish. In the event of a fake-break, we may have to turn the initial bias around if price begins to swing back through the other side of the pattern.
GBPUSD Daily Chart (Wedge about to break)
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---Written by Paul Robinson, Market Analyst
You can follow Paul on Twitter at @PaulRobinsonFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.