EURUSD Remains Trapped In Range, But Triangle Is Pointing Higher

Canadian dollar was one of the weakest yesterday after BoC leaved rates unchanged at 1% due to weakness in the economy and lowered GDP expectations for 2013 from 2.3% to 2.0%. IMF also lowered global growth for 2013 but markets did not move much after the announcement. Most of the FX pairs and major commodity markets are trading sideways while stocks keep pushing higher. S&P500 slowed down yesterday 4 points ahead of 1500 psychological level.

EURUSD tested 1.3250/60 support few sessions back from where we could see push higher today after just released better than expected German PMI numbers 48.8 vs. 47.1 expectation, but still in a contraction zone.

From an Elliott Wave perspective EURUSD still could be forming a triangle in wave four, but it’s hard to call the end of it. We need some impulsive reactions out of the path before direction of the pair can be confirmed.

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