EURUSD: A New Impulse Wave Developing

EURUSD

• A five (5) wave bullish impulse was completed on July 1, 2025.
  
• The market promptly entered into an ABCDE triangle consolidation with ABC sub waves within each consolidation wave.
  
• At the end of the last corrective wave (wave E), price broke out of triangle consolidation.
  
• The triangle was retested, ending at exactly the 61.8% Fibonacci retracement level, marking the new wave 2.
  
• A bullish engulfing candle on the daily (1D) timeframe and a Double Bottom on the 4H timeframe, the neckline of which hasn't been broken yet, is observed.
  
• There has also been a bullish divergence of the on the RSI in the 4H timeframe.
  
• At market open, a break of the double bottom is expected.
  
• A continuation of this bullish impulse I expect to end around the 127.2% Fibonacci extension level to make the wave 3 of this new impulse.
  
• Stop loss will be 20 pips below the double bottom for a total R:R of 1:8.