Flag consolidation: The EUR/USD is developing somewhat of a flag pattern as it consolidates just under the 2012-high of 1.3485. This “flag” is a little premature as it lacks establishment of support, but the resistance has been established in a very short-term trendline. Looking at the 1H chart, the grey box represents last couple of week’s range, which EUR/USD broke above to end last week (1/25). Note the RSI holding above 40 and tagging 70, signs of bullish momentum development. It has held above 40 again and is about to break above 60, which would be a continuing sign of bullish momentum. Price is also attacking ... (full story)