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EUR/USD Developing a Flag Pattern, Suggesting Further Downside Risk

The market ended last week consolidating EUR/USD's sharp decline that followed the FOMC statement on Wednesday.


(EUR/USD 4H Chart)

After a Thursday and Friday session, we are starting this week's trading with EUR/USD in flag pattern. 

This suggests the market is still bearish. If you start to see failure to break a new high, you might want to start considering a bearish continuation trade. That's what happened in the previous "larger version" of the flag pattern.