Hello everyone. It's been a while since I published last trade idea. I've been very busy helping clients to review their portfolios in December.
EURUSD got my attention as it tested the key structure of the bull flag pattern. I marked two support zones in yellow color with the lower one expected to be not so easy to break.
Looking at the daily chart, you can identify that the downtrend channel was firmly broken on Oct.25th, a few days after CPI release which is below expectation. That's a turning point where DXY started to pull back from multi-year high.
In addition, the pair refused to create new low and a nice pullback has been formed thereafter.
As mentioned above, two yellow zones are considered to be support zones with 1.0550-75 and 1.0200-1.0300. The latter is a wider zone and we can zoom in to identify bullish reverse pattern on 60 min.