In below article we will describe EUR/USD and EUR/AUD chart (on different TFs) using Elliott Wave Theory – you can read about waves and the whole strategy here.

# EUR/USD

When it comes to this pair, there is few variants possible. First one shown above assumes, that we are dealing with the first wave of the 3 or C wave and irregular wave acting as wave-ii of wave-I and 3C. This means that after support re-test we should see an increase in the nearest vicinity of the internal resistance and another decline.

[pullquote align=”left” cite=”” link=”https://www.xtrade.com/aff-track/?aid=2001&lang=19&destination=70″ color=”” class=”” size=””]Get 25USD for free and try Elliott Wave Strategy![/pullquote] Another scenario draws third wave from wave 3C with really small correction in a shape of wave-ii. This may mean that defeating the current support will be easy and that further declines are still possible.

Third case is almost identical to the above ones, the first new wave appreciate, so the correction during the fourth wave of the whole big downward move is coming to an end. The fifth wave of a higher grade should start to draw itself.

The last one is the end of the first part of the correction and the begging of C wave. The spot that initiate the upward move may be the closest support. Price should fall below this support and rebound dynamically.

# EUR/AUD

For this pair, I see two scenarios. First one is the fourth wave of last upward wave which start to end. This does not mean that 4th wave have to end right now. It may be delayed and take the form of triangle or some simple correction. Once its completed, you should see 5th wave, which minimum target will be the last high.

The second scenario assumes, that the upward movement from 2012 is a 1A wave, and the current increases draw themselves as B wave of irregular correction. This will mean a strong down movement connected with breaking below the last low (inside the 2C wave).

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Peter started his trading career in 2000. He spent first six years trading futures and created a system giving a 25% yearly return with limited risk. Since 2006 connected with foreign exchange market, where he trades using trend lines and breakouts, but spends the most of his time on Elliott Wave Theory. Here in Comparic, writes about Price Action and Waves in daily trading.