Preferred Elliott wave view suggests EURAUD cycles remain bearish against 6th April high (1.4447). Decline from 1.4447 – 1.3753 was a double three Elliott wave structure i.e. (w)-(x)-(y) when wave (w) completed at 1.4118, wave (x) completed at 1.4221 and wave (y) completed at 1.3753 making a higher degree wave ((w)). Pair is currently in wave ((x)) bounce correcting the decline from 1.4447 peak. Wave ((x)) is also expected to unfold as a (w)-(x)-(y) structure when wave (w) completed at 1.3987, wave (x) completed at 1.3867 and wave (y) higher is now in progress and expected to reach 50 – 61.8 fib Fibonacci retracement zone of wave ((w)) between 1.4100 – 1.4182 before sellers appear and decline resumes. Red arrow indicates trend is down and move up is shown with a dashed line so we are not interested in buy the pair & expect the bounce to find sellers in 7 or 11 swings as far as pivot at 1.4447 high remains intact. Only a break of pivot at 1.4447 high would open another extension higher.
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