EURUSD Breakout From The Bullish Flag Pattern

Frano Grgic • by Frano Grgić

Forex trader, Market Analyst • Dec 11, 2020 at 3:38 AM EST

We have a price breakout from the H4 channel which was a bullish flag pattern. That pattern means after a strong move UP the price declines inside a channel like we have now on the chart.

EURUSD H4 Forecast

We have a price breakout from the H4 channel which was a bullish flag pattern.

That pattern means after a strong move UP the price declines inside a channel like we have now on the chart.

Mostly it is a sign of continuation and in this case, we have bounced from 1.20800 and now heading up towards 1.21800.

(Click on image to enlarge)

If you take a look into H1 time frame you can see a bullish engulfing price action signal right on the $1.20800 level. That signal is a confirmation that the support level is holding and the price is ready to move UP.

A strong bullish signal pushed the price outside the bullish flag pattern. After that, the price returned back inside the channel to retest the support.

The next resistance is at 1.22840 which will stop the price from moving UP.

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