EW Analysis: EURAUD In The Expanded Flat Correction
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Hello traders!
We want to share with you a pretty clear bearish pattern on EURAUD.
Looking at the daily chart, we have seen a huge spike up to 1.6550 level at the beginning of 2019, which we think was the top of wave 5/C, especially due to the decline that followed later and which can be already as part of a bearish reversal!
Looking at the 4-hour chart, after that big fall from highs, EURAUD was more or less sideways which more and more looks like a correction within downtrend. That said, we believe that EURAUD can be trading in a big expanded flat correction since we have seen a three-wave rally into a wave A) and then a complex corrective decline into a new low for wave B). So, current recovery must be as part of wave C), which should be made by five waves that can be either an impulse or maybe even slow overlapped wave structure within an ending diagonal (wedge pattern).
However, we think that EURAUD is turning back above previous wave A swing high towards ideal 50%-61,8% Fibonacci retracement and 1.6150-1.6250 resistance area and this is where we expect bears to show up again! In case if goes higher or more complex, we remain bearish as long as it's trading beneath 1.6550 invalidation level!
Trade well!
Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
We want to share with you a pretty clear bearish pattern on EURAUD.
Looking at the daily chart, we have seen a huge spike up to 1.6550 level at the beginning of 2019, which we think was the top of wave 5/C, especially due to the decline that followed later and which can be already as part of a bearish reversal!
Looking at the 4-hour chart, after that big fall from highs, EURAUD was more or less sideways which more and more looks like a correction within downtrend. That said, we believe that EURAUD can be trading in a big expanded flat correction since we have seen a three-wave rally into a wave A) and then a complex corrective decline into a new low for wave B). So, current recovery must be as part of wave C), which should be made by five waves that can be either an impulse or maybe even slow overlapped wave structure within an ending diagonal (wedge pattern).
However, we think that EURAUD is turning back above previous wave A swing high towards ideal 50%-61,8% Fibonacci retracement and 1.6150-1.6250 resistance area and this is where we expect bears to show up again! In case if goes higher or more complex, we remain bearish as long as it's trading beneath 1.6550 invalidation level!
Trade well!
Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
Nota
EURAUD came nicely into a projected resistance zone, so watch out for a bearish reversal soon!
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