The technical chart of EURUSD is showing signs of Inverted Flag Pattern Formation. Euro had closed at 1.1228 against the US dollar on Friday.

1. 25-APR-2016
(By Rajeev Darji | T: +91-22-24902693 | Email: rajeev@metalsupdate.com)
Note: S=Support | R=Resistance | PV=Pivot |
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EURUSD: Pivot Level:- Support 0.0975 — 1.0600 — Pivot: 1.1170 Resistance: 1.1800 — 1.12370
Strategy 1: Sell @ CMP | Target @ 1.0840—1.0450| Stop loss @ 1.1808
Strategy 2: Positional Sell Below 1.0450 | Target 0.8710—0.6975 | Stop loss @ 1.4650
EURUSD Reverts From Resistance Level; Outlook Weak
The technical chart of EURUSD is showing signs of Inverted Flag Pattern Formation. Euro had closed at
1.1228 against the US dollar on Friday.
The euro has been trading in a wide range of 975 pips in the past three months, with currency finding re-
sistance at 1.1495 and support at 1.0450.
The Pole of the Inverted Flag Pattern was formed when the euro declined from the higher level of 1.4000
in early May 2014 and touched support level of 1.0520 on the lower side in mid-April 2015, a fall of al-
most 3,480 pips. This was the second largest drop after the 2008 crash.
The euro is currently reverting from the resistance level of 1.1495 and may drop further to test the lower
support level of 1.0450 in the coming days.
The Positional Chart Pattern indicates that a break below the support level of 1.0450 (Point F) will confirm
the Pattern breakdown and sustained trading below the support level will bring the euro to 0.8710, which
is a 50% fall in prices from the breakdown level (Point F).
The currency is expected to remain under pressure as long as it remains below the immediate resistance
of 1.1808, which is a 38.2% retracement of the Pole.
The market scenario looks bleak for the currency in the coming days as the euro may fall much sharply to
trade below the October 2000 level of 0.8225.
Thereafter, the next target on the lower side could be 0.6975, which is a 100% retracement of the Pole.
However, if EURUSD trades above the resistance level of 1.1080 on closing basis then the currency is
likely to rise further in the coming days.