EURAUD Short term Elliott Wave view suggests that the decline to 10/27 low 1.5052 ended intermediate (X). A rally from there is unfolding as an impulse Elliott Wave structure with extension and showing bullish sequence in the pair. This 5 waves move should end Minor wave A of an Elliott wave zigzag structure. In which case, after 5 waves move ends, the pair should pullback in 3 waves at least as the Elliott Wave Theory suggests. Up from 10/27 low 1.5052, Minute wave ((i)) ended at 1.5232, Minute wave ((ii)) ended at 1.5079 low. Minute wave ((iii)) ended at 1.5605. Minute wave ((iv)) ended at 1.5483 low and Minute wave ((v)) of A ended at today’s peak 1.5656. Below from there, the pair is correcting the 10/27 cycle in Minor wave B pullback and expected to find the buyer’s in a sequence of 3, 7 or 11 swings. We don’t like selling the pair and favor buying the wave B dip provided the pivot at 10/27 low 1.5052 stays intact.
EURAUD 1 Hour Elliott Wave Chart
Zigzag is a 3 waves corrective pattern which is labeled as ABC. The subdivision of wave A is in 5 waves, either as impulse or diagonal. The subdivision of wave B can be any corrective structure. Finally, the subdivision of wave C is also in 5 waves, either as impulse or diagonal. Thus, zigzag has a 5-3-5 structure. Wave C typically ends at 100% – 123.6% of wave A.
