It was March 23rd, when “EURAUD Could Be Aiming At 1.51” was published. The purpose of that article was to determine which one of the two extremes – 1.4465 or 1.5085 – was more likely to be broken first by EURAUD. As usual, we decided to trust the Elliott Wave Principle and apply it to the price chart of the pair, given below.
The sharp rally on March 10th was assumed to be a five-wave impulse due to its speed and sharpness. Therefore, the following decline was supposed to be only a correction, preceding the resumption of the uptrend in wave 3/C. It seemed to be a simple (a)-(b)-(c) zig-zag retracement with a triangle in wave (b). In addition, the 61.8% Fibonacci level cause EURAUD to bounce, which we thought was the start of the next bullish phase. The above-shown chart was everything we needed to form a positive outlook. The next one shows how things went.
As visible, the bears came back for a while in wave (ii), but that was just another temporary corrective pull-back. The 61.8% level was never retested. When the bears gave up, the bulls returned to lift the pair as high as 1.5158 as of April 5th, thus demonstrating the Wave principle’s forecasting ability once again. Currently, EURAUD seems to be in wave (iii) of 3/C to the north, which means we could still expect higher levels from now on.
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