Triangles are five wave patterns in a contracting shape that occurs in the middle of an uptrend. Well, this is exactly what we see on EURUSD hourly chart, so price structure suggests that a new push higher is coming. There is room for 1.1000 area to be hit this week where in fact upside could be limited. Why? Because we know that ‘triangles occur prior to the final move within a larger structure’, so any new leg up should then be final piece within a larger uptrend; blue wave five in our case. From an invalidation point of view, pattern will have to be changed if wave a) support will be broken.
EURUSD, 1H
