The EURUSD remains in a range, which will probably tighten for the rest of the week. A break from the range (triangle) is expected next week. To repeat yesterday’s analysis, which remains valid; “the nature of price action since last week’s low strongly suggests that a triangle is unfolding as a 4th wave within a 5 wave decline from 1.6040.
Very short term, slightly lower prices in wave d of the triangle would be followed by an e wave that completes the triangle. If the triangle interpretation is correct then price will remain below 1.3302 and drop to a new low (below 1.2327), perhaps as early as early next week. I will look to identify completion of the triangle going forward in order to position for the drop below 1.2327. Until then, the EURUSD is a range trading candidate.” The mentioned wave d could be complete although additional weakness towards 1.2600 is possible short term before the expected wave e bounce.