Elliott Wave Analysis: EURAUD Trading in Final Stages Of An Ending Diagonal

By: Gregor Horvat | Tue, Dec 6, 2016
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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).

EURAUD, 4h

EUR/AUD 4-Hour Chart

EURAUD, Weekly

EUR/AUD Weekly Chart

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:

Elliott Wave Idealized Basic Ending Diagonal

 


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Gregor Horvat

Author: Gregor Horvat

Gregor Horvat
www.ew-forecast.com

Gregor Horvat

Gregor Horvat, based in Slovenia, has been in the forex markets since 2003. He is a technical analyst and individual trader who has worked for Capital Forex Group and TheLFB.com. He also is founder of forex services on www.ew-forecast.com. EW-Forecast.com provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website: http://www.ew-forecast.com/

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