EUR/AUD Prepares for Takeoff: Dual Flag Formation Near Breakout
19 June 2025
In today’s technical analysis, EUR/AUD presents a textbook bullish setup, showcasing a clear and disciplined price structure. What stands out is the presence of two continuation patterns – depending on interpretation, they can be considered either flags or wedges. From a purist’s view, flags require parallel trendlines, while wedges allow for some convergence. However, in this context, the difference is largely academic, because the key focus lies on the upper boundary of the formations.
The first flag already produced a breakout to the upside, delivering a strong bullish signal and setting the stage for further gains. Now, the price is consolidating within a second similar structure, and once again, it is challenging the upper black line that defines the pattern. This repetition of bullish formations reflects persistent buying interest and strong momentum.
Adding to the technical confluence is a purple horizontal resistance level, which previously acted as the top of the first flag, then briefly turned into a support, and now functions once again as a barrier. The alignment of both the black trendline and the horizontal resistance creates a high-stakes technical test.
A clean breakout above both resistances would not only confirm the continuation of the uptrend but also deliver a powerful buy signal with the potential for significant upside. Until then, traders will be watching closely to see if EUR/AUD has the strength to punch through this layered resistance zone.