EURUSD has been very annoying with all those new lows and new highs since the middle of January. “New lows and new highs”, is there an Elliott Wave pattern that fits this description? Fortunately yes, there is one – the expanding triangle. Let’s see whether EURUSD’s recent price action looks it or not:
The answer is yes, it looks like an expanding triangle. So, if this is the correct count, we should expect a decline from current highs to the 1.34 area and a strong rally after it. However, the expanding triangle is a very rare pattern. From a trader’s perspective, in order to make a move in this market, we need to wait for more confirmation to strengthen our opinion.