Elliott Wave Analysis of the EUR/USD Currency Pair by Sid from ElliottWavePredictions.com. Click on the chart twicec to enlarge.

The recent breakout to the upside indicates that the triangle that started on Halloween 2008 in the Euro is still underway. Since wave E of the triangle didn’t quite reach the most typical .618 retracement of wave D back in February, maybe price simply isn’t going to be satisfied until that level (1.3832 in Euro) is reached.

Here are a couple of pertinent quotes from Elliott Wave Principle by Frost & Prechter:

p.83: “E waves in triangles appear to most market observers to be the dramatic kickoff of a new {trend} after a {base} has been built. They almost always are accompanied by strongly supportive news. That . . intensifies the . . conviction of market participants at precisely the time that they should be preparing for a substantial move in the opposite direction. Thus, E waves, being ending waves, are attended by a psychology as emotional as that of fifth waves.”

p.52: “Many analysts are fooled into labeling a completed triangle way too early. Triangles take time and go sideways. Give triangles time to develop.”

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Sid
http://elliottwavepre.wpengine.com