Elliott wave Analysis: Bears on EURAUD Taking Over
EURAUD is falling strongly from 1.636 high, suggesting that a bigger bullish cycle found a top, and that a new minimum three-wave reversal to the downside is in play. We labelled a wave A in play, where we are now tracking its five sub-waves. That said, once wave A fully shows up, that is when wave B may follow and look for resistance near the 1.600 area.
A five-wave, impulsive, clear development is a sign of where the trend is going. In this case we can expect a bearish trend. Also, a decisive break that we see below the channel line connected from 1.528 level can be a confirmation for a top in place, at 1.636 level, and that a bearish reversal is unfolding.
On the 1h chart, we have a better look at the unfolding higher degree drop. We see a triangle forming now in fourth wave of a decline in the middle of an extended black wave 3. That’s a continuation pattern that suggests a new drop soon; ideally to 1.5600 area, while market is below 1.600.
Disclosure: Please be informed that information we provide is NOT trading recommendation or investment advice. All of our work is for educational purposes only.
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