EUR/USD Builds Support Inside Flag, But No Buy Signal Yet

In today’s technical analysis, we’re watching EUR/USD, which continues to trade within a clearly defined channel down formation — a structure that’s been in place since the beginning of July.

This formation, marked by blue trendlines, fits the profile of a flag correction — a classic consolidation pattern that often develops during a broader uptrend. In this case, the bigger picture remains bullish, and the flag represents a temporary bearish pause.

The price action is starting to shift. After several days of lower lows, EUR/USD has stopped falling and is now holding above a horizontal support, marked in orange. This support base signals that bearish momentum is weakening, and it gives bulls a reason to watch closely — but no clear buy signal has been triggered yet.

A bullish breakout would unfold in two stages:

1. The first signal comes if price breaks above the red downtrend line — the most recent and immediate resistance.

2. A second, stronger buy signal will come with a breakout above the upper blue line of the flag, confirming the end of the correction.

On the flip side, if the price breaks below the orange horizontal support and extends lower, that would invalidate the bullish setup and serve as a clear signal to go short.

EUR/USD is coiling — and whichever direction breaks first will likely dictate the next leg.

Source: https://www.axiory.com/analytics/technical-analysis/eur-usd-builds-support-inside-flag-but-no-buy-sign