Bears Underway on EURAUD – Elliott wave analysis
EURAUD is bearish, however, sideways price activity since June of 2020 can be part of a corrective pause within a bigger trend. We are talking about a complex, W)-X)-Y) pattern in 4, where price can look for resistance at the upper corrective channel lines and at the Fib. Ratio of 23.8 (1.663/1.677 area), or higher in case price starts unfolding a deeper pullback. Possible resistance for a deeper wave 4 correction would then be at Fib. Ratio of 38.2/50.0 (1.700/1.730 area), and at the former swing high at the 1.719 level.
Once we see an impulsive decline from possible resistance region, and below the lower corrective channel lines, that is when a correction can be completed, and wave 5 of A/1 underway.
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