? EUR/AUD Sideways Pattern Indicates Bullish Potential ?
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Dear traders,
The EUR/AUD is building a sideways correction but price seems to be ready for one more bullish push up.
This article examines the wave patterns on the EUR/AUD and what traders can expect with the next swing.
EUR/AUD Long-term Structure
The EUR/AUD has broken above mulitple resistance trend lines and is building a series of higher highs and higher lows.
At the moment price could be in a wave 5 of wave C which is targets the previous high of wave A and potential Fib targets.
EUR/AUD Bullish Breakout Struggling
The EUR/AUD is having problems to break above the previous top and resistance level (red) as price is action is moving sideways which is represented by the purple box.
A bullish break confirms the uptrend continuation whereas a bearish breakout could see price fall to test support (blue).
EUR/AUD Wave 4
The consolidation is probably a bearih wave 4 after price completed a strong bullish wave 3 (purple).
Price respected a shallow 38.2% Fib which is typical for wave 4s.
The current pullback could be a deep wave 2 retracement as long as price stays above the 100% Fib level of wave 2 vs 1.
A bullish breakout could confirm the continuation of a wave 3 pattern (blue).
Many green pips,
Chris Svorcik
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