Monday, January 27, 2014

EUR/AUD - A expanding flat correction is developing.

EUR/AUD

Wave B has extended furtherb than first expected and has turned into an expanded flat correction. Wave B could be in place already, but if this scenario is correct, then resistance at 1.5772 will have to protect the upside for a break below support at 1.5660. A break below 1.5660 will be the first indication that wave B is over, but a break below 1.5507 is needed to confirm that wave B is over and wave C is developing for a decline towards at least 1.4844, but I still think the ideal target for this correction is near 1.4051.

However, if resistance at 1.5772 is broken, then wave B needs one more new high closer to 1.5900 and maybe even closer to 1.6045 before wave C will be ready to take over.


4 comments:

  1. Replies
    1. Hi Zink,

      I think you are talking above the A wave of the expanded flat correction.
      A waves of expanded flat correction is always in 3 waves.

      Kind regards
      EWS

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    2. Sorry once again to boder you but after 5 waves up isn´t expect an A-B-C decline till bottom wave 4?

      Delete
    3. Hi Zink,

      Sorry my mistake.

      If the expected decline becomes an zig-zag, then yes wave A should be in five waves, but if my Count is correct we already know that it will not be a simple zig-zag correction. It could become a complex correction, where a zig-zag correction will be part of the decline, but there is no of telling yet.
      As we have made a new high above the top of wave 5 the only corrections that alloweds this outcom is a running triangle or an expanded flat correction and I will go with the expanded flat correction as the most likely option for now.

      Kind regards
      EWS

      Delete