EURAUD May Turn Bearish from 1.6150-1.6250 Area
May 07 2019
We have decided to share with you our analysis on EURAUD as we think that there is a clear pattern that may send prices lower in weeks ahead.
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 since it unfolded impulsively.
Following that fall from the highs, we can see that EURAUD was more or less sideways as seen on the 4h chart, which looks like a correction based on price structure and personality. That said, we believe that EURAUD can be trading in a flat correction since we have seen a three-wave rally in wave A) and then a complex corrective decline into a new low for wave B). So, current recovery must be part of wave C), which should be made by five waves that can be either an impulse or maybe even a slow overlapped wave structure for an ending diagonal (wedge pattern).
If we are on the right path then EURAUD is still underway back above previous wave A) swing high towards ideal 50%-61,8% Fibonacci retracement and 1.6150-1.6250 resistance area where bulls may start slowing down. We would be willing to look for possible short opportunities once we will be able to recognize the end of wave C. For now, we think it’s too early.
EURAUD, Daily + 4H
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