The EURUSD exchange is embedded in a triangle, which is a typical technical analysis pattern that anticipates an explosion of volatility.
The triangle, in fact, means that the prices seem to accumulate energy as if they were a spring, up to the point where the energy explodes, causing a very violent directional movement. A bit like what happens during an earthquake.
But in which direction will we have this movement?
As we can see from the EUR seasonality chart attached, August is normally a bearish month for this exchange. Having said that however, if prices will continue to remain in the triangle during all the month then the chances of a strong rise would be really remarkable. This will happen mainly because September is a very bullish month.
We will continue to monitor the trend and as we try to anticipate the movement in these currencies.