EUR/AUD buying the dips at the blue box area
|In this technical blog we’re going to take a quick look at the Elliott Wave charts of EURAUD, published in members area of the website. As our members know, we’ve been favoring the long side in EURAUD due to incomplete bullish structure the pair is showing in the cycle from the April 5th low. Consequently, we recommended members to avoid selling the pair, while keep favoring the long side. Recently the pair made a short term pull back that has given us good trading opportunities. In the further text we are going to explain the Elliott Wave Forecast and trading strategy.
EUR/AUD Elliott Wave 1 Hour chart 06.30.2022
Short term cycle from the 1.4857 ended as 5 waves structure – ((i)) black. Currently the pair is giving us correction that is unfolding as Elliott Wave Double Three Pattern. Wave ((ii)) Pull back looks incomplete at the moment. We expect to see another leg down toward 1.51269-1.50088 area ( Blue Box – buying zone) .We don’t recommend selling the pair against the main bullish trend. Strategy is waiting for the price to reached marked blue box zone, before entering the long trades. As the main trend is bullish we expect buyers to appear at the blue box for 3 waves bounce at least. Once bounce reaches 50 Fibs against the (x) blue high, we will make long position risk free ( put SL at BE). Invalidation for the trade would be break of marked invalidation level 1.50088.
As our members know, Blue Boxes are no enemy areas , giving us 85% chance to get a bounce.
EUR/AUD Elliott Wave 1 hour Asia chart 07.01.2022
EURAUD made leg down as expected. The pair found buyers at the Blue Box area and we are getting good reaction from there. We see Pull back completed at 1.50568 low. The rally from the blue box already reached 50 fibs against the (x) connector. Consequently, we made long trades risk free (put SL at BE). Now we need to see break of 06/23 peak to confirm next leg up is in progress.
EUR/AUD Elliott Wave 1 hour London chart 07.01.2022
The pair resumed trading higher and broke 06/23 peak as we expected. EURAUD should ideally remain bullish against the 1.50568 low and resume trading higher toward 1.593 area ideally.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.