On December 8th, I mentioned how EURUSD was flagging below 1.2150.
That’s another way of saying a bull flag was developing.
Since reaching the 1.2150 resistance area last week, the EURUSD has pulled back.
We weren’t surprised by that as 1.2150 has been in every weekly forex forecast video for the last few weeks.
Despite reaching a key resistance area, the EURUSD price action has remained constructive.
The uptrend is alive and well, and the euro is holding above the 1.20 region where it broke out on December 1st.
This upward movement is something I’ve been writing about since July.
Earlier this week, I told Daily Price Action members that the 4-hour structure below could prevent a full retest of 1.20 as new support.
Since then, the EURUSD is respecting this bull flag pattern perfectly.
However, the market needs to secure a 4-hour close above channel resistance near 1.2130, at a minimum.
Just keep in mind that even if the euro breaks 1.2130, buyers still have to deal with the 1.2150 to 1.2160 area.
It’s going to take a daily close above 1.2150/60 to open the door to 1.2330.
We’ll see where the EURUSD goes from here, but so far, the price action continues to favor buyers.
My longer-term target remains 1.2500.
Disclosure: I hold a EURUSD long position.