Commentary: We wrote yesterday that “there are a few possibilities right now with the EURUSD but the one that seems most probable is that a triangle is unfolding in wave 4 within the 5 wave advance from the June low at 1.3261. Triangles unfold in 5 waves so is a triangle is forming now, then the EURUSD will find a bottom near term and advance towards the upper resistance line near 1.4700 or so.” The pair did find a bottom and the rally from 1.4365 is viewed as wave d within the a-b-c-d-e triangle. Look for resistance in the 1.4740 area for this leg of the triangle. The next leg of the triangle will be lower in wave e in order to complete larger wave 4 before the thrust higher in wave 5 through 1.50.
Strategy: Flat
Al Bawaba
