Triangle formation is acting very well so far, as the Eur fell quite sharply yesterday against the US dollar down to 1.3120 region. You will notice that pair found the base exactly at the lower support line of a triangle, so a pull-back will likely appear from this region into a wave E, final leg of a triangle.
We know that wave E must not retrace more than 100% of wave D distance, which means that we favor a bearish scenario as long as the pair remains below 1.3435 important resistance. Once wave E is done, we will anticipate a decline towards 1.3000 region and through the bottom of a triangle, established at the end of November 2010.
This article is update from December 31 2010. Check it here
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