EUR/AUD remains bearish

April 15, 2015 08:29 AM

The preferred Elliott wave view suggests EURAUD cycles remain bearish against 6th April high (1.4447). Decline from 1.4447 – 1.3753 was a double three Elliott wave structure i.e. (w)-(x)-(y) when wave (w) completed at 1.4118, wave (x) completed at 1.4221 and wave (y) completed at 1.3753 making a higher degree wave ((w)). The pair is currently in wave ((x)), bounce correcting the decline from 1.4447 peak. Wave ((x)) is also expected to unfold as a (w)-(x)-(y) structure when wave (w) completed at 1.3987 and wave (x) completed at 1.3867. Wave (y) higher is now in progress and expected to reach 50 – 61.8 fib Fibonacci retracement zone of wave ((w)) between 1.4100 – 1.4182 before sellers appear and decline resumes. The red arrow indicates that the trend is down and a move up is shown with a dashed line. We are not interested in buying the pair, and expect the bounce to find sellers in seven or 11 swings as far as pivot at 1.4447 high remains intact. Only a break of pivot at 1.4447 high would open another extension higher.

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