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EURUSD: The falling wedge was verified. What about the bullish flag?

Monday, June 25, 2018 11:36 AM GMT

US trade conflict with China is keeping investors cautious as negative news are still coming from both sides. During the weekend, a US official reported that US is considering to prevent firms with minimum 25 percent Chinese ownership from acquiring U.S. companies with “industrially significant technology”.

Even though major EU and US indices had a positive bounce on Friday, they are trimming all their profits during London’s session. This means that nervousness is back.

Overviewing the EURUSD on the daily timeframe, the pair reached 20 EMA and it is testing the EMA from below. On the other hand, 5 EMA acts as a short-term support. This could be a positive indication for the buyers.



Heading to hourly timeframe, we are able to see how the falling wedge was verified and it gave a solid reversal bounce. The pair is currently consolidating above 200 SMA and it looks forming a bullish flag. If it performs a valid breakout to the upside then it may reach the next resistance level at 1.173. If so then sellers may have a short-term bearish setup as noted on the chart.


(EMA = Exponential Moving Average, SMA = Simple Moving Average, 5EMA = Blue, 20EMA = White, 200SMA = Yellow)

Always review your own analysis. If there is a confluence between the current study and your own strategy, then you may have even better trading setups.

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