EURUSD is bullish from current levels
The EURUSD chart above is showing us a rising move that is channeling really well and this is a characteristic of a corrective wave. However, the move is to the upside and this means we’re having a complex correction that is most likely part either of a second wave or a b wave of the same degree.
For the sake of this analysis, it doesn’t really matter as long as it is ending up with a higher level and this means we’re bullish here.
There are no important economic releases today with the exception of ECB’s Draghi speaking and this will affect the way the Euro related pairs are moving. If this running correction is indeed a complex one, then most likely it needs to end with a contracting triangle and this makes the current move lower that started last Thursday only the first leg of the triangle.
But we know that there are multiple types of triangles, as it can be a running one, or an irregular one as well. However, no matter the type of it, it should resume higher and wave b to follow should do that.
Being a leg of a contracting triangle, it needs to be corrective as well, so look for zigzag family patterns or elongated patterns as well.
How to trade
All in all, EURUSD is bullish from current levels and positioning should be for an expected bounce. We are favoring a call option from the 1.1210 with today’s end of day expiry while if price is moving up into 1.1270 a put option with the same expiration date should be traded.