The euro is probably preparing for another rally.
Ever since it reached an important top at the psychological level of 1.20, EURUSD has been choppy and produces overlapping waves.
There is no clear direction in the short term, however, the bull trend remains valid.
Given the above, it is highly likely that the euro is about to form a triangle.
Triangles are classical, corrective, but trend continuation patterns.
After the potential triangle is completed and prices break out of it, the trend should continue to the upside, even if that's only temporary.
While I expect the sideways movement to continue prior to US elections and a triangle to be formed, the pattern is not there yet.
There's also a chance that the pair will just continue higher.
Therefore, I favour long positions at the next short-term support around 1.1775 with stops at the level where a potential triangle would be invalidated, at 1.1611.
Profits should be booked at 1.20, where the pair is expected to stall again.
There is no clear direction in the short term, however, the bull trend remains valid.
Given the above, it is highly likely that the euro is about to form a triangle.
Triangles are classical, corrective, but trend continuation patterns.
After the potential triangle is completed and prices break out of it, the trend should continue to the upside, even if that's only temporary.
While I expect the sideways movement to continue prior to US elections and a triangle to be formed, the pattern is not there yet.
There's also a chance that the pair will just continue higher.
Therefore, I favour long positions at the next short-term support around 1.1775 with stops at the level where a potential triangle would be invalidated, at 1.1611.
Profits should be booked at 1.20, where the pair is expected to stall again.
Trade active:
The entry was triggered. Expending prices to bounce soon. Stops remain at 1.1611.