Elliott wave Analysis: EURAUD and GBPNZD Sharing A Bullish Correction
EURAUD is currently unfolding a bigger, complex correction, up from midpoint of January when a five-wave decline had fully unfolded its five-wave drop. We are now observing a complex pullback in play, a double-zig zag to be exact, which is now unfolding its second leg c, with potential resistance and a reversal zone near the Fibonacci ratio of 50.0 or 61.8 (1.620/1.635 region). A sharp drop from the mentioned area and a break below the 1.580 area would confirm a completed correction and more weakness on the EURAUD pair.
GBPNZD is trading into a bigger correction, labelled as wave 2) which is also a complex pullback in seven swings. We can see the first A-B-C rally and leg X completed, which means current recovery can be leg A of the second corrective cycle. Resistance and a bearish reversal can be seen around the Fibonacci ratio of 61.8 (1.960/1.980 region), from where a sharp bearish drop can follow.
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