Elliott Wave Analysis: Triangle On EURUSD Pointing Higher

EURUSD is slow ahead of FED, looking more and more like a triangle in wave B that suggests a push higher into wave C towards 1.0700 area. We know that triangle occur prior to the final wave within a larger trend, so we know that upside is going to be limited, ideally after the FED decision today at 19.00GMT.


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. A Triangle is either contracting or expanding depending on whether the channel lines are converging or expanding. Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3.