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    Both DXY and Euro carving out flag pattern - BBH Ivan Delgado

    Both the Dollar Index and euro appear to be carving out a flag pattern, notes Marc Chandler, Global Head of Currency Strategy at BBH.Key Quotes Flag patterns are usually continuation patterns. If valid, it would suggest that from a technical point of view, addition dollar gains are likely. It is not clear at what level the pattern is no longer valid in the Dollar Index.Ideally, it would hold above 95.30, a retracement level that corresponds with the 20-day moving average (~95.25), but even if it eases to 94.40 (200-day moving average is near 94.65), it may still be valid.  Flags fly at half-mast, and depending on how the pattern unfolds; it could project toward 97.50-98.00.The euro held the $1.1170 retracement level ahead of the weekend.  Above there is the $1.1230 retracement target, which coincides with the 20- and 100-day moving averages.   Support is seen in the $1.1000-$1.1030 band. If its flag is also at half-mast, it could project a move below $1.08.

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