EUR/USD Price Analysis: Teasing a bull flag breakout

• EUR/USD's daily chart shows a bull flag pattern, a trend continuation setup. 
• A close above 1.1932 is needed to confirm a flag breakout.

EUR/USD is currently trading just above the upper end of the daily chart bull flag, which usually ends up accelerating the preceding uptrend. 

A breakout would be confirmed if the spot ends Wednesday above the flag resistance at 1.1932. That would imply a continuation of the rally from the July 10 low of 1.1255 and open the doors for a strong move above 1.20. 

The 14-day relative strength index, however, is hovering in overbought territory above 70 and so is the weekly RSI. As such, the breakout may remain elusive or fail to power immediate gains. 

That said, a bearish reversal needs a daily close below the Aug. 12 low of 1.1711.

Daily chart

Trend: Bullish

Technical levels