Within the 1.30-1.35 corrective consolidation there are three striking observations.
1. We haven't seen the high for the current rally.
2. There needs to be a sell off before it breaks the 1.3485 high.
3. This 1.30-1.35 consolidation should eventually break higher.
Since triangles, like wedges, should have 5 legs there is scope for at least another 24-48 hours consolidation before spiking up at least to the 1.3415 C=A equality target possibly the 1.3450 triangle thrust target.
We will look to cover longs on this rally and sell against 1.3485 but for what? Certainly the triangle apex in the 1.3250-1.33 region but ordinarily 1.30. However, the Eureka analogy (where the Euro appears to be consistently repeating the price action from 11 months ago at the end of February 2011) suggests this sell off will test but hold 1.3250 before breaking higher.
Further videos or commentaries are available form www.MarketVisionTV.com or @EdMatts on Twitter.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.