In February 2017 EURAUD found a bottom, rallied higher and has been trending higher since. Traders should continue to follow the trend and look for possible signals for any buying opportunities.
At the moment the pair can extend higher as long as the September 20, 2018 low holds. A simple A-B-C (Red) Elliott Wave correction can be seen and has possibly terminated in the blue box, where we at EWF expected the pair to find buyers and bounce.
The move/wave higher, from September 20, 2018 low, can now be possibly labelled as red wave 1 and at the current moment we are expecting for the possible red wave 2 to terminate. If looking to trade EURAUD, traders will need to watch when and if red wave 2 terminates and if the 1.6047 level holds.
As long as EURAUD stays above 1.6047 we will continue to expect another move higher. Aggressive traders can enter the BUY/LONG trade when the market opens with Stop Loss at 1.6047. Conservative traders can enter the trade when price breaks above the peak 1.6176 of red wave 1 with stop loss also at 1.6047.
If EURAUD breaks below the 1.6047 invalidation level then the pair will extend lower for a Elliott Wave double correction or even a triple correction. Trade safe and always use proper money/risk management.
EURAUD 1 Hour Chart 9.22.2018
