Mid-trade analysis: EURAUD (long)
Price has zoomed up in Wave 1 of A rather quickly in this pair and I’m now anticipating a wave 2 correction to the 1.1996-1.2011 area before heading higher in Wave 3. Depending on how the waves subdivide, what we saw over the past 24 hours may simply be wave i of 1 of A, meaning we are now in a wave ii of 1 correction.
In chart form, here is our status in this trade:
Based on wave ratios obtained in yesterday’s advance, I estimate the top of wave v at around 1.2190. Depending on wave structure and momentum readings as we approach our limit of 1.2310, I may move my limit downward to the 1.2150-1.2200 area.
saigonfx 