Targeting the short-term cycle, we believe price is back on the downside, making it’s way towards the key-level at 1.7557 and probably even beyond towards the previous lows around 1.7450.
Since our moment of entry, a couple of days ago, the pair had started to reverse itself quit aggressively. Crossing back below the top key level of 1.7919 convinced us that we were looking at a classic bullish trap.
Although we’ve already collected 200 pips, we believe the EUR/NZD is not even half way through. We estimate at least 250 pips are still in the pipeline.