- EUR/USD creates a bear flag on the 4-hour chart.
- A flag breakdown would bring in additional losses.
EUR/USD is currently sidelined near 1.0820, having faced rejection near 1.09 on Wednesday.
The recent sideways action in the range of 1.0750-109 has taken the shape of a bear flag – a pause that usually refreshes lower.
Acceptance under the lower end of the bear flag at 1.08 would imply a resumption of the sell-off from the May 1 high of 1.1019 and shift risk in favor of deeper declines to 1.0547 (target as per the measured move method).
The outlook would turn bullish if the upper end of the flag at 1.09 is breached. That would open the doors for a re-test of 1.1019.
4-hour chart
Trend: Bearish
Technical levels
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