Good morning team,
A nice move on GOLD this morning, we are expecting a final push into our TP target zone. This position on the EURUSD also aligns with the setup on gold. Later this week the US reports the next round of inflation data which has been bullish for the DXY over recent months due to mounting concerns of rising inflation. Whilst we see this as an opportunity to go long on the USD later in the week, in the short term there is potentially one more high to complete a 5 wave bullish sequence on the EURUSD.
EURUSD 15 Min Chart
Based on Elliott wave theory, a triangle formation can ONLY occur in wave b, or wave 4. Therefore, the triangle structure setting up on the 15 min time frame indicates another impulsive wave to the upside to complete a 5 wave bullish sequence. We will be looking to short the EURUSD once the wave structure is complete leading into the US inflation data later in the week. Our SL is set beneath the e wave invalidation point.
Trade Setup: BUY EURUSD, entry price 1.1439, stop loss 1.1407 and take profit 1.1500.
Stop loss: 32 pips
Take profit: 61 pips