EurAud Continuation Trade SetupPrimary Count
Price is advancing in a small wave 4 recovery with the ideal resistance at the 38.2% retracement of wave 3 near 1.7719–1.7722, which often caps fourth waves in fast trends.
A subsequent break lower would complete wave 5 with equality to wave 1 at or around 1.7622 - 1.7600
Why this count
The decline into the labeled wave 3 shows impulsive characteristics, while the current bounce is overlapping and contained—typical wave 4 behavior into Fibonacci resistance.
The projection cluster at 1.7622 (5 vs 1 equality) provides a textbook objective for terminating moves when wave 3 has carried the bulk of the trend.
Trade plan
Entry: Monitor for reversal signals in the 1.7715–1.7725 sell zone; consider scaling on a lower-timeframe break of the bounce channel.
Stop: Above 1.7750 to allow noise beyond the 38.2% level while preserving the wave 4 thesis.
Targets: Take profits at 1.7622- 1.7600.
What to watch
Confirmation comes from an impulsive turn down from the 38.2% zone followed by a break of bounce lows, indicating wave 5 has engaged.
Invalidation is a sustained push and hold above 1.7750 that compromises the wave 4 cap and suggests a deeper correction toward higher retracements.
Structure comes before prediction—let the reaction at 1.7720 reveal whether the fifth wave is ready to break lower or if the correction needs more time to mature
