EUR/USD Daily Analysis: The short-term bottom at 1.25 continues to push price upward in a bullish flag pattern (see orange dotted lines on daily chart) above its 10-day moving average. In this sort of long-term flag pattern we normally expect to see one of two outcomes: the traditional, bearish break below the flag pattern that would extend the longer-term bearish trend. Or, a short-squeeze that pushes price well above the flag pattern but is ultimately sold back down after a rally to the 38.2 or 50% retracement levels (on daily chart).
Our Preferred Trades*: We will stay flat on the conflicting short-term and long-term trends, but we remain short-term bullish above 1.2690 and long-term bearish. Aggressive traders could look to buy into dips toward 1.2700 expecting the flag pattern to continue.
Yesterday’s EURUSD SwingPRO Signal Result: No trades taken Friday.
Today’s SwingPRO Signal: Flat on conflicting trends.
*CandlePRO: CandlePRO can be used in conjunction with our daily analysis and “our preferred trades.” For example, if we prefer “going short” or “selling a rally” then we would look for bearish candlestick signals after a rally or near resistance levels. Alternative if we prefer “going long” or “buying a dip” then we would look for bullish candlestick signals on price drops or near support levels.
