EUR/USD Price Analysis: The 4-hour bull flag is still intact
- EUR/USD trading just under flat on Tuesday but it could have been soo much worse.
- There is a bull flag chart formation that needs to be kept an eye on.
EUR/USD 4-hour chart
EUR/USD is trading just under flat on the session on Tuesday at around 1.1237 but at its lowest point, the pair traded at 1.1191. There have been some headlines that put the greenback on the back foot during the US session but the EUR has not been exactly trading too well itself.
The key feature on the chart is the bull flag marked by the black lines. At the moment the price is not close to breaking out of the top of the pattern but it could be important in the coming sessions. The light blue diagonal line is also interesting as the price broke below the trendline and this could just be a retest before a move lower.
The indicators are not looking too bullish at the moment with the Relative Strength Index under the 50 level. The MACD histogram is still in the red and the signal lines are also under the mid-point.
If 1.12 breaks again to the downside it will make a lower high lower low pattern and the price could start a new trend lower. The next support below that is around 1.1168 and a break of that level would be confirmation that the bears are in charge.
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Additional levels
Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
