The reason why I am saying to stay sharp is because this the EURUSD - most traded pair. That means anything can happen.
Normally, I would say that because it has broken out of the triangle to the upside, we should be aiming for higher levels. But be careful. If this will decide to retrace back a bit closer to the trend line, then watch its activity carefully, because any stupid news might take it back into the triangle and all these positive gains will be wiped out.
So the trading idea would be this:
1. If this will retrace back to the trend line, then don't do anything. If it will rebound and start going back up to 1.20255, you can try and place a BUY position to run it at least to the 2017 high. A STOP would be the level, where it touched the trend line from above.
2. If this will strongly continue to rise and it will reach the 2017 high first, then we could potentially capture a bit of SHORT to the 23.6% on the Fibonacci. Once you are in profit, then quickly set a STOP at 2017 high.
I hope it is clear what I wrote here, but if you have any questions on my crazy idea, then leave a comment.
Keep an eye on the price action!
Happy New Year, everyone! I wish you all a lot of profit in 2018!
@Forexer1, I would love to SHORT that as well, but I am not touching this until it will give me clarity on which line it wants to touch first: the 2017 high or the upper side of the trend line.