Price is approaching our first support (horizontal pullback support, 23.6% Fibonacci retracement, 61.8% Fibonacci retracement) where we might see a bounce to our first resistance level at 1.6226 (61.8% Fibonacci retracement).
Ichimoku cloud is also showing signs of bullish pressure in line with our bearish bias.
Trading CFDs on margin carries high risk.
Everyone is selling, but be careful. AUD will weaken this summer. I just bought and made few pips to grab some easy buck.
"Some remarks on the implications of Reserve Bank of Australia Governor Lowe's speech yesterday.
High Frequency Economics:
say that expectations of a June rate cut will continue to gather pace
unless there is a some data surprise..."
The EURAUD daily chart shows that the sharp bullish run from 1.53505 low in December 2018 can be seen as a five-wave impulse in wave (A), labeled 1-2-3-4-5.
The Elliot wave theory states that a three-wave correction in the opposite direction follows every impulse. In EURAUD's case, wave (B) looks like a W-X-Y double zigzag/double three retracement....
We also see the formation of this AB=CD harmonic pattern on the 4 hr chart. This is a pattern that still has strong upside potential which signaled us to take a long position with take profit set on the green zone. We have a neutral outlook on this pair, therefore we are trading this pattern and the previous Gartley pattern we posted as well. FX:EURAUD
With a bullish reversal already in place in EURAUD, it is now possible to identify the bottom at 1.56836 as the invalidation level for the bullish outlook. This means that as long as EURAUD is trading above 1.56856, the big picture bullish outlook remains valid.
Considering that EURAUD seems to be completed a five-wave impulse in wave 1, a...