EURAUD Short - Resistance, Candles, and Elliot say Yes

Price completed a bearish engulfing Yesterday. Trading close to four year high. Case can be made for the Elliot Count I have labeled as it violates no rules for the impulse wave up, and the correction wave guidelines for corrective waves are pretty clear.

So it looks like we are just starting wave C down, which normally has a length approximately the same as wave A. An alternative count still has the next move as down. The oscillator has turned south too

So long term look to C point for a target, short term run in an out using highs and lows, but this pair is going down. The stop can be either the high of the engulfing, or just beyond the 4 year high.

Komen:

Title should say AUDCAD ! doh!