The longer view of the EUR/AUD suggests EUR out performance and/or AUD under performance for the next several months. It appears red wave was an ending diagonal. Therefore, the 1.36 low should be solid.
Since the circle 5 low did not reach the lower trend line, this expresses some pent up energy available. Breakout trades to the long side are preferred. I placed a stop loss near 1.4125 which is the top of a small wave 1.
If 1.4125 fails to hold, it will allow the opportunity to position to the long side from lower levels near 1.39.
1.53 is a minimum target for this long trade with a tight risk to reward ratio. Next levels to target suggest 1.58, 1.63, and 1.79.
Since the circle 5 low did not reach the lower trend line, this expresses some pent up energy available. Breakout trades to the long side are preferred. I placed a stop loss near 1.4125 which is the top of a small wave 1.
If 1.4125 fails to hold, it will allow the opportunity to position to the long side from lower levels near 1.39.
1.53 is a minimum target for this long trade with a tight risk to reward ratio. Next levels to target suggest 1.58, 1.63, and 1.79.
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www.seethewaves.com - A school to learn how to read charts & Elliott Wave Theory.
EW Express - bit.ly/elliottwaveexpress
