EUR/USD Price Analysis: Euro forms a bear flag on 4H

EUR/USD creates a bear flag on the 4-hour chart.
A flag breakdown would bring in additional losses.

Omkar Godbole FXStreet Contributor

EUR/USD is currently sidelined near 1.0820, having faced rejection near 1.09 on Wednesday.

The recent sideways action in the range of 1.0750-109 has taken the shape of a bear flag – a pause that usually refreshes lower.

Acceptance under the lower end of the bear flag at 1.08 would imply a resumption of the sell-off from the May 1 high of 1.1019 and shift risk in favor of deeper declines to 1.0547 (target as per the measured move method).

The outlook would turn bullish if the upper end of the flag at 1.09 is breached. That would open the doors for a re-test of 1.1019.

4-hour chart

Trend: Bearish

Technical levels

1. R3 1.0958
2. R2 1.0927
3. R1 1.0873
PP 1.0842
1. S1 1.0788
2. S2 1.0757
3. S3 1.0703

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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