EURAUD On A Bearish Ride – Elliott wave analysis


Hello traders, EURAUD is in a bearish trend, down from 1.980 level, as we see a clear five-wave in the making. At the moment we are observing a five-wave structure within a third wave of a bigger impulse, that can be near completion, as all legs are visible. As such support and a new turn into a bigger wave 4 correction can be around the corner; ideally price will start rallying at the 1.653 area. 

Wave 4 is a correction within a trend, a pullback, which can face resistance, and a new turn lower at the 1.701/1.720 levels, where former swing highs and lows can react as turning points, also former wave 4) of one lesser degree can become good resistance for the ongoing wave 4. In case these first resistances do not hold, and rally gets bigger, then be aware of second possible resistances at the 1.738/1.761 level, where Fib. Ratios of 38.2 and 50.0 can slow the prices down.

That said, a new firm drop (in five waves of a lesser degree) would confirm a wave 4 correction completed, and wave 5 underway.


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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 His feature articles have been published on,, Action forex, Forex TV, Istockanalyst, ForexFactory,,, etc. He recently won the award on 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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