EUR/AUD: Are bears back?
|EURAUD is in a nice bearish structure, continuing to push the price lower. We have been tracking this complex correction since the start of May, which has now stretched for nearly three months. But today the pair is aggressively attacking the bearish confirmation level at 1.78349. And with impulsive drop from the highs we should be aware of more weakness and I may look for shorts on rallies soon.
Below, we explain what a double zigzag complex corrective structure looks like
W-X-Y is a complex correction, where wave X connects the first part of the correction with the second one. Normally, you will see a lot of overlaps within this structure, and despite the deeper retracements, these moves are usually fully reversed later on. The key is to watch for an impulsive reaction away from the end of wave Y—that’s often when traders may look for potential opportunities back in the direction of the previous higher-degree impulsive trend.
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