Tuesday, June 2, 2015

Euraud At Critical Wave Zones.

From the weekly chart, it is clear that price is forming a zigzag formation as part of a corrective move to resume the bullish direction.

 The expected bullish move ( if the afformentioned correction is completed ) is expected to be, in a motive mood, the completion of a probable zigzag correction of the larger picture.



On  a lower time frame, price seems to have completed the bearish correction with an ending diagonal and price is expected to start a fresh bullish move from there especially if the intraday resistance region at 1.4350-4450 is taken out in a motive mood. 



A retracement to this intra day region could occur in a corrective pattern before price expectedly could resume the bullish mood with more speed and momentum to break the upper channel (in red) of the last correction. 

If the bullish move is activated, we could see a full blown impulsive pattern to 1.7500-1.800 in the long run.

On the contrary, 1.3250 ( on the downside) is a very critical fibonacci confluence point for price to get to before the proposed bullish move. 

Were it not for the ending diagonal formed, I would have waited for price to get to this level before embracing the long term bullish bias.

If the intraday region at 1.4350-4450 couldn't be bridged and instead price starts moving down, then 1.3250 will be a good level to watch out for.

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