According to our analysis published 28th July - we posted dovish projections on Euro versus Australian Dollar, suggesting that the market had reached our upper trend line of the bullish channel and was time for it to experience a bearish correction. Market did came down to 1.59029, above the ichimoko cloud in four hourly chart but lost the bearish momentum to move any further down and continued its bullish trend by creating a higher high. After the aforementioned move, finally we got EURAUD below the ichimoku cloud, while still being almost 200 pips away from the ichimokus' cloud surface in daily. This indicates that the pair will revert itself in shape of a deeper bearish correction before providing us with any further bullish sentiments. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

According to our elliot wave analysis, EURAUD has now finally completed its impulsive 5 wave bullish structure of higher degree under intraday and weekly time frame, also having a closing below our previous highs.  We have our 61.8% fibb retracement level in daily chart which can also be taken as a sign of targeted destination in shape of bearish correction. In our previous analysis we didnt have a confirm closing or a blockade to the bullish 5 wave impulse and we posted for possibilities of a higher high being formed which it did, now fortunately, we can consider the current market structure as a temporary end to the bullish wave until a higher degree of bearish correction is completed. In weekly chart we have another indication that EURAUD will be experiencing a bearish reversal in regards to the market retrieving from the lower surface of ichimoku cloud and the formation of bearish dark cloud cover is suggesting we are in the right dovish direction. Keep following our analysis for further updates, we will keep traders posted as we find change in the market structure. 

EURAUD

Aug 07 2021