EURUSD pair reversed lower at the end of the last week after unsuccessful push through 1.3400 resistance. From an Elliott Wave perspective we think that pair just slowed down for few days in a fourth wave consolidation that is still incomplete but more importantly its part of a bullish trend. As such, sooner or later EURUSD will probably recover and break out of 1.3250-1.3400 range. For now we like a triangle idea after recent bounce from lower side of a range followed BOJ meeting which is bullish for the markets so risk on trend may continue which will help to lift the EUR and other currencies, expected USD and JPY.
Get more analysis and Elliott Wave forecasts directly from www.ew-forecast.com . Get free access now through 7-Day Trial Offer.Triangle
You can also follow us on twitter @ewforecast
A Triangle is a common 5 wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves B to D. A Triangle is either contracting or expanding depending on whether the channel lines are converging or expanding. Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3.
