EUR/AUD ? Bearish Wave 4 is Around the Corner ?

3 min read
Adarwish

adarwish

Author

Hi traders,

EUR/AUD developed a bearish price action during the last two months… It seems to me that pair has completed 3 waves down and the currency pair is now about to start a new bullish correction which is aiming for a wave 4 correction… We will review different scenarios as the pair can either bounce for a larger correction or expand the bearish momentum.

This article will discuss the wave perceptive and expected scenarios during the coming days using wave pattern, support, and resistance and SWAT software.

EUR/AUD Waiting Confirmation of Bearish Wave 4

As seen in the below chart, the pair developed a new bearish momentum… In my view, this pattern seems 3 waves down and the price could now be developing a wave 4, here are the main conclusions:

  1. The price reached 161.8% Fibonacci expansion level and which is a key level and price may bounce for wave 4.
  2. Fib count of Wave 4 is 23 %, 38.2% or 50% and sometimes 61.8 %.
  3. So we can expect the pair to go to any of the above fib ratios and then start a bearish momentum for wave 5.
  4. I expect the price to make some correction of wave 4 for the moment.

We still need more confirmation before trading this pair because the price could also continue the bearish momentum … in the next paragraph, we will discuss this development by using SWAT software.

EUR/AUD SWAT CHART

Now its time to use the SWAT 4-hour chart to determine the entry points according to the expected wave patterns… The price is moving to the downside but still, need some developments to happens before we trade this pair…  Here are the main developments to consider:

  1. Need a strong bullish candle to break 21EMA.
  2. Our expected short target is wizz level 4.
  3. I advise traders always to protect their profit or and use trailing stops.

So in my view, traders should wait for the confirmation before trading this pair and look for long opportunity only for the moment as it matches the expected wave.

Good trading,

Ahmed
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