Elliott Wave Analysis: EURAUD Trading in Final Stages Of An Ending Diagonal
EURAUD did not break below Nov 10 low yet, so pair is still trapped in wave B corrective bounce that belongs to final parts of an ending diagonal that can decline to around 1.3650 once black wave B is completed. We see current price trading at interesting resistance area from where a small impulse back to 1.4200 or lower could suggest a break lower into black wave C of 5).
The ending diagonal is a special type of motive wave that occurs primarily in the wave 5 position when price has moved too far and too fast. Some ending diagonal triangles appear in the C wave of an ABC correction. In all cases, the ending diagonal terminates the move of larger patterns. They consist out of five waves, with each having three more sub-waves.
Basic Ending Diagonal: