Guest Commentary: MarketVisionTV - Hourly EURUSD – What does a B wave Triangle Imply?
Regardless of whether we have seen a 5 wave or 3 wave push from the 1.2970 low into the 1.3485 double top, we have seen a complete wave sequence. Much like the rally with triangle type consolidation from Feb 21 to Feb 23, we have seen similar price action in this decline. It appears we have seen a solid five wave decline to 1.3305 and a very shallow upside correction to 1.3350 in a running triangle format. As triangles can only be B waves or fourth waves, it may be providing an excellent trading opportunity. As we are now nearing the ideal 1.3150 equality target, it suggests we are ending a solid three wave decline from the 1.3485 peak. Thus be wary of an upside break of tight down channel resistance to offer a return to the 1.3315 B wave triangle apex, as an interim B wave or possible new trend with the potential to eventually attempt the high. Only below 1.3120 would threaten to inject downside momentum in a full C equals 1.618 percent of A decline of 1.3040 which also coincides with a full 50 percent retracement of the entire 1.2625 rally.
By Don Haines, www.MarketVisionTV.com
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