Inside technicals and chart patterns by 
The sideways, three o’clock Wave on the daily Swissy was short lived as the U.S. Dollar’s break higher finally allowed the Swissy to do what it seems to have been wanting to do: trade higher.
The move was pre-confirmed and I would consider this a asymmetrical triangle as there is a horizontal support level sitting at the 1.2000 level. Aggressive traders could have taken the initial break at 1.2165 through the lowest of the cluster of downtrend lines. This does leave a sufficient amount a room to run the 1.2200 level but the more conservative trader can wait for the top downtrend line to break which would put the buy at 1.2205. This would likely demand an 82.00 break of the U.S. Dollar Index and certainly support at the 1.220 in the Swissy.
Also notice that I turned on a little-used feature of the EZ2-Wave study that signals when the Wave is on the strong, neutral, or weak side if the Wave. I have mentioned this positioning in both my books and you can refer to them to see how you can better judge the direction and strength of the current trend with this understanding. You certainly don’t need the color coding but it is a great visual cue.
The blue candles signal a neutral price action and this is exactly what we want as we set up a potential momo entry. The neutral candles also signal the "pause" between uptrends and downtrends where the market congests or consolidates. Put that together with the three o’clock Wave and the visual is clear that the trend is sideways.