Autochartist has recently identified the high Quality Flag chart pattern on the daily EUR/USD charts. The overall Quality of this chart pattern is rated at the 8 bar level as a result of the sharp Initial Trend (measured at the maximum 10 bar level), average Uniformity (5 bars) and significant Clarity (9 bars). This chart pattern follows the previous strong downward price impulse (whose strength is reflected by the high Initial Trend value) from the February of this year. The Top of this Flag (point B on the chat below) formed when the pair reversed down from the combined resistance area made out of the 38,2% Fibonacci Retracement of the aforementioned preceding downward price impulse, the round price level 1.2600 (which served as a strong support for the pair at the start of this year), the resistance trendline from the November of 2011 as well as the upper daily Bollinger Band. The pair is expected to fall in the direction of the lower support trendline of this chart pattern.
The daily EUR/USD chart below shows the technical price levels coinciding at the top of this Flag:
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