5/19/2008 – EUR/USD – The daily chart for the key EUR/USD pair, as shown, has formed what appears to be an inverted pennant (in magenta) extending from the all-time high. Although flags and pennants usually occur in the midst of a trend and tend to act as a continuation of that trend, the current pennant is located near the tentative top after a record uptrend run. This could be hinting that price has indeed begun a bonafide reversal after reaching the all-time high last month. If this is indeed the case, a continuation in the direction of the inverted pennant with a clean breakdown of the formation would lend ... (full story)