Hello traders. Hope you had a nice weekend. Overnight news from China manufacturing PMI was not so bad. Came down a few decimal points from the expected, which is good news for markets. Later on we have the Core Personal Consumption Expenditure and the ISM Manufacturing in the US as the main events. Indices are up during the night and morning. We still see a possibility that EURUSD moves upward. The fall from Friday is now recovering and the question is will it last long to prove the current outlook. Lower invalidation levels are closer than the upward ones but we will keep our bullish outlook for now. Under this count, the triangle should be completed and we would go higher.
EURUSD, 1H
A Triangle is a common 5 wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves B to D. Triangles are overlapping five wave affairs that subdivide into 3-3-3-3-3.
A Triangle formation pattern :