We’re up 300 pips on the GBPAUD trade. Risk should be moved to breakeven (2.0585). Bullish potential remains significant. There is currently a bearish opportunity in the EURUSD.
The EURUSD is expected to exceed 1.6018 and continue on to all-time highs in the next few weeks BUT a triangle may be unfolding in which case the advance from 1.5303 would be wave D and wave E would be underway now. E waves of triangles are usually sharp and deep; so it is probable that the decline would continue until 1.53/1.54. Given the proximity of the point where the triangle would be violated, reward to risk is heavily skewed in favor of bears for the next few days.
Most legs within triangles form zigzags. Wave D (if it is a D wave) is a completed zigzag. Wave c of the zigzag subdivides into 5 waves as it should, which instills confidence in placing risk just above 1.5843. As mentioned, E waves are sharp so we should know if we are correct in our assessment right away.