What is prefigured here, through a careful examination of the Elliott cycles, is the beginning of a corrective wave.
The 1h chart shows the price level at the top of the AudUsd wave 5 and, before the breakout, a new rebound on the trend line could configure a reversal pattern: head and shoulders or double top.
The complicated Elliott wave puzzle show us, clearly, what the probable entry level will be for a buy limit on EURUSD on the 1h chart.
We are in full subwave III of the major wave 2. A 38% retracement would not fall below the resistance of the top of the wave I.
A perfect fit for a good bullish restart.
What we see is the formation, on the fifth bullish wave, of an interesting double head and shoulders.
The two neck lines, in addition to being in parallel, have already suffered a breakout. Now we are in the pullback phase.
a great time to get into short on about 200 pips.