As the ECB came last week and messed up all the technical charts possible with the bearish statement calling for acting next time they meet in June, it is about time to re-evaluate the situation on the eurusd and check if there is still something there for the eurusd bulls.
Therefore, this scenario should be called, if you want, the last chance for eurusd bulls.
What we are having here is a daily chart that looks at the move from the 1.20 area to the upside and from my point of view it is still possible that the whole corrective wave following wave 1 blue to be a double three running, and this is ending almost always with a contracting triangle.
The triangle that you are seeing there is not a classical contracting triangle but a running variation of it, and the recent 1.3994 rejection comes from the apex of the triangle.
In such a triangle, the e wave should not end below 61.8% when compared with the previous d wave and this should be the stop loss, anywhere in the 1.3550/70 area.
The target on the other hand is more than generous as it implies 1.40 to come in a jiffy, considering the time frame.
And that should be just the beginning of a strong impulsive move to follow.
It remains to be seen if the markets will confirm it.
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