Hello fellow traders. In this technical blog we’re going to take a quick look at the Elliott Wave charts of EURAUD, published in members area of the website. As our members know, we’ve been favoring the long side in EURAUD due to incomplete bullish structure the pair is showing in the cycle from the April 5th low. Consequently, we recommended members to avoid selling the pair, while keep favoring the long side. Recently the pair made a short term pull back that has given us good trading opportunities. In the further text we are going to explain the Elliott Wave Forecast and trading strategy.
Short term cycle from the 1.4857 ended as 5 waves structure - ((i)) black. Currently the pair is giving us correction that is unfolding as Elliott Wave Double Three Pattern. Wave ((ii)) Pull back looks incomplete at the moment. We expect to see another leg down toward 1.51269-1.50088 area ( Blue Box – buying zone) .We don’t recommend selling the pair against the main bullish trend. Strategy is waiting for the price to reached marked blue box zone, before entering the long trades. As the main trend is bullish we expect buyers to appear at the blue box for 3 waves bounce at least. Once bounce reaches 50 Fibs against the (x) blue high, we will make long position risk free ( put SL at BE). Invalidation for the trade would be break of marked invalidation level 1.50088.
As our members know, Blue Boxes are no enemy areas , giving us 85% chance to get a bounce.
You can learn more about Elliott Wave Double Three Patterns at our Free Elliott Wave Educational Web Page.
EURAUD made leg down as expected. The pair found buyers at the Blue Box area and we are getting good reaction from there. We see Pull back completed at 1.50568 low. The rally from the blue box already reached 50 fibs against the (x) connector. Consequently, we made long trades risk free (put SL at BE). Now we need to see break of 06/23 peak to confirm next leg up is in progress.
The pair resumed trading higher and broke 06/23 peak as we expected. EURAUD should ideally remain bullish against the 1.50568 low and resume trading higher toward 1.593 area ideally.
Keep in mind that market is dynamic and presented view could have changed in the mean time. You can check most recent charts in the membership area of the site. Best instruments to trade are those having incomplete bullish or bearish swings sequences. We put them in Sequence Report and best among them are shown in the Live Trading Room