The EUR/AUD has been in a bull run since finding support in November above 1.4209. After a flat November, price started to rally in December until the 1.5332 resistance last week. Since then it has retreated and been trading in a range roughly between the 1.4978 support and the 1.51-1.5123 resistance. (EUR/AUD 4H Chart 12/26)As we get into the Friday, 12/26 US session, we are seeing the pair threaten to break below the week-long range, and open up the 1.48-1.4830 area. Another leg in bearish correction is at hand, unless price pulls back above 1.50. Otherwise, we still have downside risk in the short-term towards 1.47. If the EUR/AUD is to remain bullish however, it should remain above 1.47. Then, if price can break above 1.5125, it would revive the 1.5332 December high, with risk of breaking even higher towards the high on the year around 1.58. 1.5830. (EUR/AUD Daily Chart 12/26) The daily chart shows that the market has been bearish from Q1-Q3. However, after the mode started shifting in September, and by the start of Q4, EUR/AUD has broken above a falling trendline and initiated a bullish reversal. So far, the bullish scenario is still developing. Here is where the 1.47 level comes into play. If the market is indeed in a bullish mode, it should be forming impulse waves, according to Elliott Wave principles. According to the EWPs, in an impulse wave, wave 4 should not overlap with wave 1. So, as we can see on the daily chart above, if the current bearish correction does extend, we should limit the bearish outlook to 1.47 in anticipation of the impulse wave structure.A break below 1.47 makes the bullish outlook shaky, and a break below 1.46 is a strong signal that EUR/AUD is either sideways or bearish, with risk towards 1.42-1.4210. A break below 1.42 would put pressure on the 1.38 support and essentially, the low on the year.