E EUR/AUD Is Trading Bullish – Elliott Wave Analysis

EUR/AUD is in strong uptrend from June 2018 low which now looks more and more like an impulse in progress so we can expect market to unfold a five-wave move from 1.5280 area especially if we consider that market is breaking above former blue wave 3 highs, so there is a chance that blue wave 5 is underway to 1.6800. That said current turn lower on the lower time frames can represent a temporary pullback within sub-wave 3) of five which can take price towards the Fibonacci projection zone of 161.8.

EUR/AUD, Daily

Now switching to the 4h chart where we see an impulsive structure from 1.5600 region followed by a new three-wave correction from the highs, which looks to be a minor wave iv. This minor wave iv represents a temporary pullback, that can look for support near the Fibonacci ratio of 38.2, and near the 1.6039 level, where former swing low can react as a turning point. We can also see price slightly turning higher from the mentioned region which can already be the first sign of a reversal. A further break above the 1.6194 level will confirm more gains into blue wave v.

EUR/AUD, 4h