The price movement in the final trading day of the previous week completely replicated the schematic depicted on the chart. There was a new local minimum followed by a touch of the upper boundary of the channel, then a sharp decline to the opposite side and another attempt to rise.
It’s likely that this formed wave 4 in the initial diagonal triangle. Therefore, the current observed price increase is part of wave 5 of the same wave pattern. In this case, we can expect further price growth with a new local maximum and subsequent corrective decline.
This will form waves 1 and 2 in the emerging upward phase, which can take either impulsive or corrective form.
In the current situation, it’s not recommended to open any trades as the room for maneuver seems insignificant.
Investment Idea: Flat.
Origin: FreshForex
