EUR/USD. The Final Part of the Initial Diagonal Triangle.
EUR/USD. The Final Part of the Initial Diagonal Triangle. | 29 April 2024
29 April 2024, EUR/USD
The price movement in the final trading day of the previous week completely replicated the schematic depicted on the chart. There was a new local minimum followed by a touch of the upper boundary of the channel, then a sharp decline to the opposite side and another attempt to rise.
It's likely that this formed wave 4 in the initial diagonal triangle. Therefore, the current observed price increase is part of wave 5 of the same wave pattern. In this case, we can expect further price growth with a new local maximum and subsequent corrective decline.
This will form waves 1 and 2 in the emerging upward phase, which can take either impulsive or corrective form.
In the current situation, it's not recommended to open any trades as the room for maneuver seems insignificant.
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