Triangle pattern for EUR/USD. Which direction to take?

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.

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