EUR/AUD has been trading inside this falling channel for a while now. Looking at the daily chart, we can clearly see that EUR/AUD finished 5 waves down and started its correction to the upside, so we expect EUR/AUD to break the channel with wave C and possibly cause a trend reversal. Plus, using the Fibonacci Retracement tool, you can see that the price reached the 78.6% Fibonacci level at (1.53438) and started retracing back up.
As a first target, we should always aim for the previous wave 4 at (1.59186), as according to the Elliott waves principle, the previous wave 4 is known to be a very critical level.
Also, AUD/USD has been showing more weakness than EUR/USD when the DXY started soaring last week as AUD/USD has been dropping heavily compared to EUR/USD which was moving in a more corrective matter.
As a first target, we should always aim for the previous wave 4 at (1.59186), as according to the Elliott waves principle, the previous wave 4 is known to be a very critical level.
Also, AUD/USD has been showing more weakness than EUR/USD when the DXY started soaring last week as AUD/USD has been dropping heavily compared to EUR/USD which was moving in a more corrective matter.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.