EURUSD - A move to the upside today?

Following up on our trade, the Euro is showing some signs of strength today with the technical indicators pointing to an upside move. In the chart below, we have the 4 hour EurUsd chart. If you look to the Stochastics, we are seeing a bullish bias being formed. Refer to the previous post, Sell once this brief bull rally is done.

I drew up a Fib against the peaks of Point A and B. Should price break out of this triangle, we can expect to see the break out happen between the 38.2 and 23.6 levels. As such a safe long entry would be at 1.286 with potential take profit set to 1.29342. The move is likely to go up to 1.29693.

Once we are in this region, we can expect the Euro to drop dramatically, down to 1.2523 region. What will determine this drop will most likely be based on the amount of time it would take for price to move to our projected region of 1.296.

In my previous analysis on the EURUSD, I mentioned that price is likely to reach the 1.26 levels around Thursday/Friday. Based on this input, we can assume that the Euro would go up just a little bit in order to fit into our overall analysis.

Those in the Short should adjust their stops and can look to adding to their short positions around the 1.29 levels.