Elliott Wave Analysis on USDJPY and EURAUD

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USDJPY

USDJPY finally fell to a new low after a nice corrective bounce up into wave iv) which found resistance near 119.70. Now we are tracking a new five wave decline from that swing high which is still underway, pushing the price lower within the red wave v) that can hit levels around 118.00 today. The price can turn back to the upside as a big five wave drop from December can be coming to an end. At the same time, we have to keep an eye on 117.79 level because a push through that price will invalidate our impulsive wave count as the red wave v) would then be shorter than wave iii) which is not allowed since wave iii) is already shorter than wave i).

USDJPY, 1H

usdjpy 1 (1)

EURAUD

EURAUD is moving higher as AUDUSD keeps moving lower in a sharp impulsive manner while EURUSD is going sideways. On the updated chart below we can see a nice five wave rally in the last 12 hours which is probably an impulse that confirms a bullish trend for the pair. However, we have to be aware of a three wave set-back later today, but not lower than former, red wave iv).

, 1H

EURAUD 1

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About Author

Grega Horvat Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of Ew-Forecast, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. He recently won the award on FXStreet.com for Best Forex Analysis in 2016. At Ew-forecast he helps clients and educates them about the Elliott wave principle and how to label and track unfolding patterns in real time. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty, however, is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators. EW-Forecast To be involved in the market effectively, you need the right guidance and resources, and our team can help you to achieve that. Our team is providing advanced informations about Elliott Wave theory in real time. The Elliott Wave Principle gives you a method for identifying the behavior of the markets and at what points the market is most likely to turn. We help new traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our views as simple as possible with educational goal, because knowledge itself is power!

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