Good morning Forex Kings,
EURUSD looking positive at the moment, we will look to hold our position on the trade.
We will be looking at add a position onto the AUDUSD. The AUD has rallied over the coming days as risk died down. China has lifted travel restrictions in Wuhan which has added strength to the AUD.
Looking at the AUD from a technical perspective it could be due a pull back before another leg higher.
AUDUSD – 4 Hour Charts
Using Elliott wave theory we have seen a 5 wave structure higher. Moving down to the 1 hour time frame you can also see a 5 wave structure for waves 1,3 and now 5 (which is being completed now), you can also see a 3 wave structure for waves 2 and 4.
Wave 3 = the 161.8% FIB extension and wave 4 does not cross wave 1. These are fundamental rules found in Elliott waves theory.
What does that mean for the market?
We are potentially due a sizeable pull back from these highs once wave 5 completes.
Trade Setup: SELL LIMIT – Entry Price 0.6420, stop loss 0.6520 and take profit left to run but at least targeting the 0.6200 level.