XEU Euro Daily Chart Potential Two Leg Bear Flag

Euro daily chart showing the potential two-leg bear flag pattern. If the pattern plays out, the consolidation move has just finished and the second leg down has started. The first leg was from 149 to 141, an 8 difference. Thus, after the consolidation flag, say the euro starts down again from 143. Thus, 143-8=135 target. This 134-135 area is also a strong sturdy horizontal support area which creates a confluence for price.

142 was strong support that has just given way so more downside is expected. Also many gaps to fill below. RSI is under 50% which is bearish. Price is under both the 20 and 50 day MA's which is bearish. Watch to see if the 20 MA falls under the 50 MA, if so, the bear case and the two leg bear flag will be playing out. Projection is for the two leg bear flag pattern to play out with a target of 134-135.

Monitor the following asset relationship; euro down=dollar up=commodities down=equities down=gold down=treasury price up (yields down).  This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.