The EUR/MXN Bull Flag: A Sign of Potential Upside
EUR/MXN has shown signs of forming a Bull Flag price pattern, indicating a potential for more upside in the near future. This pattern is a bullish continuation pattern, suggesting that the current upward trend may continue.
Analyzing the EUR/MXN Daily Chart
- Pattern Formation: The Bull Flag pattern is most visible on the daily and weekly charts, with the “flag pole” starting at the August 15 lows and the “flag square” developing since the price peaked on September 5.
- Potential Upside: A breakout from the flag square would confirm the completion of the Bull Flag pattern and signal more upside towards a target around 22.52 (Grey dashed line). This target is determined by extrapolating the length of the pole higher.
- Confirmation: A break above the 22.07 September 26 high would confirm the extension of the upward trend, supporting the potential for further gains.
In Summary
Based on the analysis of the EUR/MXN Bull Flag pattern, there is a strong indication of potential upside in the currency pair. Traders and investors should keep a close eye on the breakout from the flag square and the confirmation of the extension above the September 26 high to capitalize on the possible gains in the near future.