FX.co ★ EUR/USD downside continuation formation

EUR/USD Flag Pattern

The EUR/USD pair was traded at 0.9961 at the time of writing below the 0.9979 historical level (former low) which is seen as an upside obstacle. Also, 1.0000 (the parity level) represents a key resistance level.

Technically, the price is trapped within a flag pattern (up-channel) which could bring a downside continuation. The minor uptrend line represents a downside obstacle.

EUR/USD Trading Conclusion

Dropping and stabilizing below the uptrend line could activate more declines. This scenario could help the sellers catch a larger drop.