In the daily chart above you can see a bearish flag formation in EURUSD with a large pole. Setup hasn’t materialized yet fully and it’s still trading within the flag though price attempted to break down below the flag.
Since we are at the bottom, either the prices could try to go up and touch the flag’s upper trendline, or the flag could breakdown here itself. If it does break down, the fall could be steep as is the case typically with flags. For initial confirmation of breakdown, we can wait for daily close below the flag’s lower trendline and break of previous swing’s low at 1.04953 (on FXCM).
Disclaimer: This post is only to educate on technical analysis and understanding of chart patterns. Do not use them as buy/sell signals.
