By Russell Glaser
The EUR/USD has consolidated its gains over the past week, creating a bullish flag pattern on the daily chart. Given the Momentum-14 indicator is moving higher, a breakout to the upside is expected.
The bullish flag pattern has been formed between the prices of 1.4750 and 1.4900. Before entering long on a breakout of the bullish flag pattern, traders should wait for confirmation of the breakout. A move above 1.4910 should suffice. A protective stop should be placed inside the chart patter below 1.4840.
Judging from the chart pattern, a move following a breakout should take the pair roughly 400 pips to 1.5300. A take profit level can be placed near this level below the May and June 2008 lows.
Forex Market Analysis provided by ForexYard.
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