EURAUD is in a nice bearish structure, continuing to push the price lower. We have been tracking this complex correction since the start of May, which has now stretched for nearly three months.
About 9 days ago, we sent out an analysis to members that after only three waves of decline to 1.7637, EURAUD was recovering in a complex seven-swing corrective move, which could already be in the late stages of wave C. Still, there was room for a bit more upside toward the 78.6% retracement, with key resistance seen around 1.8820–1.8830. However, an impulsive sell-off from that zone would be needed to confirm the end of the corrective advance.
EURAUD Avg 20 2025 (members update)
Today, the pair is aggressively attacking the bearish confirmation level at 1.78349. And with impulsive drop from the highs we should be aware of more weakness and I may look for shorts on rallies soon.
Below, we explain what a double zigzag complex corrective structure looks like 👇
W-X-Y is a complex correction, where wave X connects the first part of the correction with the second one. Normally, you will see a lot of overlaps within this structure, and despite the deeper retracements, these moves are usually fully reversed later on. The key is to watch for an impulsive reaction away from the end of wave Y—that’s often when traders may look for potential opportunities back in the direction of the previous higher-degree impulsive trend.
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