Elliott Wave Analysis: Ending Diagonal On EURAUD Indicates A Reversal To Follow
|EURAUD is slow, so ideally still headed higher into wave C of a wave B correction that can be looking for a top in the near-future. Ideally price will hit 61.8% Fibonacci retracement level where we may see a strong bearish turn because of an ending diagonal placed in wave c. It's a powerful reversal pattern that suggests a retracement back to the start of that pattern once top is made.
EURAUD, 1h
The ending diagonal is a special type of motive wave that occurs primarily in the wave 5 position when price has moved too far and too fast. Some ending diagonal triangles appear in the C wave of an ABC correction. In all cases, the ending diagonal terminates the move of larger patterns. They consist out of five waves, with each having three more sub-waves.
Basic Ending Diagonal Pattern:
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