FX.co ★ Elliott wave analysis of EUR/AUD for March 19, 2021

EUR/AUD has corrected lower since the 1.9799 peak in march 2020 but the potential downside should be very limited from here. Ideally we will seen a final dip close to the 78.6% corrective target at 1.4948 to complete wave ii and set the stage for a new impulsive rally in wave iii to well above the wave i peak at 1.9799.

Short-term a break above the resistance-line from 1.6827 which currently is seen at 1.5520 will indicate that wave ii has bottomed while a break above resistance at 1.5692 will confirm wave ii has completed and wave iii higher is in motion.

Trading recommendation:

Buy a break above resistance at 1.5520 and place your stop at 1.5260