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EUR/USD: DB Bull Flag, Strong Breakout Probable

By Al BrooksForexMay 06, 2021 09:54AM ET
www.investing.com/analysis/eurusd-db-bull-flag-strong-breakout-probable-200578007
EUR/USD: DB Bull Flag, Strong Breakout Probable
By Al Brooks   |  May 06, 2021 09:54AM ET
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EUR/USD forex market trading strategies

EUR/USD has been turning up from the 4-day micro wedge and double bottom bull flag (with Apr. 22 low). After consecutive wedge tops, we should get a 2nd leg sideways to down, and it should start within a few days. Traders expect a double top bear flag with the May 3 high, or a double top with the Apr. 29 high.

If bulls get a breakout above the Apr. 29 high, which would still be in the 9-month trading range, it should continue for at least a couple more months.

Traders will look for a reversal down from the wedge top (1st of 2 legs up were at the Mar. 18 high and Apr. 29 highs), which would be a double top with the Feb. 25 high.

The 2-day reversal up should reach the May 3 high. Traders will then decide between a double top bear flag, or continuing up to the Apr. 29 or Feb. 25 high.

EUR/USD forex daily chart

EUR/USD Daily Chart
EUR/USD Daily Chart

Overnight EUR/USD forex trading on the 5-minute chart

  • Strong breakout to far above yesterday’s high. Should reach magnet of May 3 high today or tomorrow.
  • Overnight bull trend has been strong so day traders have only been buying.
  • Near top of 4-day trading range, so bulls will start to take profits. Overnight rally should then evolve into trading range.
  • Once there has been 20-pip pullback, day traders will expect a trading range, and they will begin to sell for scalps.
  • Even if there is a trading range, the odds of a resumption up will be greater than of a reversal down, so easier to make money buying reversals up from bottom of range, than selling reversals down.
EUR/USD: DB Bull Flag, Strong Breakout Probable
 

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EUR/USD: DB Bull Flag, Strong Breakout Probable

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Comments (2)
Shrikrishna Sawkar
Shrikrishna Sawkar May 07, 2021 8:57AM ET
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Hey, then why why you said last Friday that 2 weeks will be sideways??
Preet Gill
Preet Gill May 07, 2021 8:57AM ET
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Opinion can change in seconds in trading tf you talking about shiri
BAYNMUNH MUNHBAYR
BAYNMUNH MUNHBAYR May 07, 2021 7:07AM ET
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