EUR/USD Forms Bullish Flag, Breakout Near?
19 February 2025
Today, we focus on EUR/USD, which is developing a clean and structured pattern. Since February 10, the pair has been in an upswing, followed by a two-day bearish correction. This correction has now reached a key support level, marked in blue, and has taken the form of a flag pattern, outlined by orange trendlines.
Currently, EUR/USD remains inside the flag, but momentum suggests an imminent breakout. The next key signal to watch is an hourly close above the upper orange trendline, which would confirm a bullish flag breakout, activating a buy signal with a target at the yellow resistance.
However, if the price fails to break higher and instead closes an hourly candle below the blue support, it would invalidate the bullish setup and signal a short opportunity, indicating further downside movement.
Traders should keep an eye on both key levels, as the breakout direction will determine EUR/USD’s next major move.