Monday, January 27, 2014
EUR/AUD - A expanding flat correction is developing.
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.