EURAUD On A Bearish Ride – Elliott wave analysis
Hello traders, EURAUD is in a bearish trend, down from 1.980 level, as we see a clear five-wave in the making. At the moment we are observing a five-wave structure within a third wave of a bigger impulse, that can be near completion, as all legs are visible. As such support and a new turn into a bigger wave 4 correction can be around the corner; ideally price will start rallying at the 1.653 area.
Wave 4 is a correction within a trend, a pullback, which can face resistance, and a new turn lower at the 1.701/1.720 levels, where former swing highs and lows can react as turning points, also former wave 4) of one lesser degree can become good resistance for the ongoing wave 4. In case these first resistances do not hold, and rally gets bigger, then be aware of second possible resistances at the 1.738/1.761 level, where Fib. Ratios of 38.2 and 50.0 can slow the prices down.
That said, a new firm drop (in five waves of a lesser degree) would confirm a wave 4 correction completed, and wave 5 underway.