This is a giant triangle which has begun since the subprime!!
We have two possible scenarii :
- first the market goes crazy again with bubbles and we go up to 1.6, 1.8 etc...
- a second one, the market is reasonable, and we go back to 0.8
We have also another range and flat market period possibility, but it is unlikely, especially after a such triangle, the first one for EURO.
As the Euro zone is weaker year after year due to the debt crisis, we will go with the second scenario. Also the USD will be stronger with the new era of oil and gas, even if currently the US economy has bad indicators.
The triangle can take 2 other years to finish. That means that we will continue to have smaller average daily range... it will be better to use ranging trading systems before to switch on trending systems.