EUR/USD Plunges after Topping Confirmation; Starts Triangle Scenario |
EUR/USD Still Bullish after ABC Correction; 1.4450 is critical (7/5)
EUR/USD
- As the market trades into the European session, EUR/USD is being rocked.
- The initial stage of the triangle scenario appears to be taking shape.
- The 1H chart shows the market after a strong break below 1.4450 was then followed by a pullback. The pullback respected the previous consolidation area, and fell sharply back below the 200SMA to confirm the topping attempt.
- The 1H RSI reading shows the market establishing bearish momentum dipping below 30.
- The daily chart shows the triangle scenario developing. The middle of this triangle is near 1.4330.
- If the 1.4330 pivot is broken, the triangle support is projected conservatively to about 1.4250, and aggressively towards 1.42.
- By that time, we should have completed a 5-wave triangle, ready for a breakout to the upside, following the direction of our previous trend.
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