A triangle may be complete as wave 4 within the 5 wave rally from the January 2007 low (.6535). It is also possible that the triangle still has a bit more to go. A cautious bullish bias is warranted against .7902 in order to prepare for the breakout to new highs in wave 5.
The 1.5326-1.6376 rally is in 5 waves, therefore expectations are for a similar 5 wave rally to succeed the corrective decline from 1.6376. The pair has already come into and bounced from the first support area; the 4th wave of one less degree at 1.6066. Therefore, it is possible that a low is in place at 1.6014. A bullish bias is warranted against there. If price comes under there, then try again in the the Fibo support zone of 1.5728-1.5975.
Longer term, there is no change to the call for a push through 1.6324. Near term, price should remain above 1.5663 although a drop below 1.5864 is possible in order to complete a small correction.
The EURAUD has gone sideways for a few months now. With the lack of action, we thought we would take a look at a long term chart for perspective. One possibility is that a triangle is complete from the August 1992 top and that the next move is a bullish break from the triangle. If this is correct, then the EURAUD is forming a major low now. 1.5922 would be critical to this long term bullish bias.
There is no change to our long-standing bullish bias. The advance from the December 2005 low to the July 2006 high was in 5 waves and the decline that followed was in 3 waves. As such, the trend is up and the minimum objective is above 2.1196 (July 2006 high). Very short term, the wave count is not entirely clear but there is potential trendline support near 2.05 this week.
Tell us what you think about this report: contact the strategist about the article at jsaettele@dailyfx.com
TREND ANALYSIS is based on a rolling pivot model. LONG TERM TREND is determined by the last 3 months of price data (high, low, close). SHORT TERM TREND is determined by the last 4 weeks of price data (high, low, close). R3, R2, R1, PL, PH, S1, S2, and S3 are provided to aid in identifying entries and exits. These are objective measures and our subjective analysis (STRATEGY) may differ.
SCHEDULE
Monday: EURGBP, EURCHF, EURCAD, EURAUD, EURNZD
Tuesday: EURJPY, GBPJPY, CHFJPY, CADJPY, AUDJPY, NZDJPY
Wednesday: GBPCHF, GBPCAD, GBPAUD, GBPNZD
Thursday: AUDCHF, AUDCAD, AUDNZD
Euro Crosses Still Bullish
Linear Mode
