EUR/AUD ? GBP/AUD ? Reversal Updates

3 min read
HubertM

HubertM

Author

Dear Traders,

The EUR/AUD has completed a terminal trend pattern since my previous analysis. It looks ready for a substantial bearish correction.

This analysis will provide a brief update on the EUR/AUD and GBP/AUD price action.

Terminal Structures Appear

The EUR/AUD appears to  have formed an expanding ending diagonal as Wave 5 (yellow). This is a terminal structure which only appears in the wave 5 position (within impulse waves). In conjunction with the factors that were highlighted in my previous analysis, this ending structure strongly points towards an imminent bearish correction. In order for this analysis to remain valid, price must not break above 1.6056 anymore and begin its decent from here.

The GBP/AUD (below) shows a very similar price structure and cross-correlates signs of imminent bearish price action. However the difference in the GBP/AUD is that it failed to produce another higher high to complete an expanding diagonal pattern. In this pair, we may have instead already seen the top in the pinbar candle on Mar 22 and price-action since then formed a bearish 1-2. Alternatively it may yet form another high to finish off a diagonal here too.

Targets

A potential target for the  EUR/AUD move is 1.5625, which would be the support trend line of the wedge pattern in which it is in and most likely coincide with a bounce at the Daily chart 144 EMA.

The target for the GBP/AUD lies substantially lower, as we could be dealing here with a long-term trend continuation that could test the lows at around 1.61.50 and 1.57 (price is currently at around 1.83!)

All the best along your trading journey.

Hubert

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