I’ve been bullish on the EURUSD since late June.
The bull flag pattern I discussed on June 29th led to a 780 pip rally to 1.1970, which, as you know, was resistance until just last week.
The December 1st breakout above the 1.2000 region signaled the next leg higher for the EURUSD.
As Daily Price Action members are aware, I was front-running that breakout on November 27th with a long position.
It’s a good thing, too, because the euro has yet to retest 1.20 as new support.
And if the price action over the last few days is any indication, EURUSD may never reach 1.20 before taking off again.
As you can see from the 4-hour chart below, the pair is flagging below 1.2150.
The term “flagging” means to form a bull or bear flag.
The intraday bull flag pattern suggests that buyers remain in control.
So, while it is true that EURUSD remains below key resistance at 1.2150, that may not be the case much longer.
That said, you have to respect the fact that the euro is below 1.2150.
As I mentioned in the last weekly forex forecast, it will take a daily close above 1.2150 to expose 1.2330.
Remember that the “daily close” refers to the 5 pm EST close, which is why I use New York close forex charts.
Until EURUSD closes a day above 1.2150, expect this consolidation to continue.
Above 1.2150 we have 1.2330 and 1.2500. The latter is my longer-term target for EURUSD.
Disclosure: I hold a EURUSD long position.