EUR/MXN Price Prediction: Potential Bull Flag forming

EUR/MXN has probably formed a Bull Flag price pattern.
Such patterns signal the likelihood of more upside evolving.

Joaquin Monfort FXStreet

EUR/MXN appears to be forming a Bull Flag price pattern, most clearly visible on the daily and weekly charts. Bull Flags are bullish continuation patterns.

EUR/MXN Daily Chart

The “flag pole” part of the pattern probably began at the August 15 lows and the “flag square” part has been developing since price peaked on September 5.

A breakout from the flag square would confirm the completion and activation of the Bull Flag. This, in turn, would and probably signal more upside towards a target at around 22.52 (Grey dashed line). This is equal to the length of the pole extrapolated higher. A break above the 22.07 September 26 high would confirm the extension.

Author

Joaquin Monfort

FXStreet

Joaquin Monfort is a financial writer and analyst with over 10 years experience writing about financial markets and alt data. He holds a degree in Anthropology from London University and a Diploma in Technical analysis.

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