Either a triangle or flat is unfolding as wave 4 within the 5 wave advance from .6535. In the case of a flat, a wave B high is likely in place at .8033 and wave c is underway now and will end below .7766. In the case of the triangle, we’ll see more range trading before a thrust higher in wave 5 completes the entire advance from .6535. The next good opportunity will come when wave 5 begins. It is best to stand aside for now and let this correction unfold.
The 1.5326-1.6376 rally is in 5 waves, therefore expectations are for a similar 5 wave rally to succeed the corrective decline from 1.6376. The pair has already come into the first support area; the 4th wave of one less degree at 1.6066. Therefore, it is possible that a low is in place at 1.6025. A bullish bias is warranted against there. If price comes under there, then try again in the the Fibo support zone of 1.5728-1.5975.
Longer term, there is no change to the call for a push through 1.6324. Near term, the pair could slip below 1.5686 and test the 61.8% of 1.5278-1.6146 in a small 2nd wave before the bull resumes. The bias is bullish above 1.5278.
Trend is considered bullish as long as price is above 1.5919. Since 1.5491, advances have unfolded in 5 waves and declines in 3 waves (the drop from 1.7426 is in 5 waves but is a C wave that completes a flat correction). As long as the EURAUD is above 1.5919, there is longer term potential for the pair to exceed 1.75. Similar to the EURCAD, treat a drop below 1.6302 as an opportunity to initiate a long position / add to a long position.
There is no change to our long-standing bullish bias. “The EURNZD is expected to eventually exceed 2.1187. Recent action suggests we are correct in our assessment. Risk should be kept to 1.9703.
Tell us what you think about this report: contact the strategist about the article at <[email protected]>
[B]
TREND ANALYSIS[/B] is based on a rolling pivot model. LONG TERM TREND is determined by the last 3 months of price data (high, low, close). SHORT TERM TREND is determined by the last 4 weeks of price data (high, low, close). R3, R2, R1, PL, PH, S1, S2, and S3 are provided to aid in identifying entries and exits. These are objective measures and our subjective analysis (STRATEGY) may differ.
[B]SCHEDULE[/B]
Monday: EURGBP, EURCHF, EURCAD, EURAUD, EURNZD
Tuesday: EURJPY, GBPJPY, CHFJPY, CADJPY, AUDJPY, NZDJPY
Wednesday: GBPCHF, GBPCAD, GBPAUD, GBPNZD
Thursday: AUDCHF, AUDCAD, AUDNZD