The bullish flag pattern has been formed between the prices of 1.4750 and 1.4900. Before entering long on a breakout of the bullish flag pattern, traders should wait for confirmation of the breakout. A move above 1.4910 should suffice. A protective stop should be placed inside the chart patter below 1.4840.
Judging from the chart pattern, a move following a breakout should take the pair roughly 400 pips to 1.5300. A take profit level can be placed near this level below the May and June 2008 lows.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.