EURAUD
EURCAD
EURNZD
Commentary – Subjectively speaking, we would have rather seen a deeper correction in wave 2 from 1.7159. Still, there is enough evidence to suggest that the EURAUD is headed higher in a 3rd wave. We favored a deeper correction because “wave 5 of the 1.5491-1.7159 rally was extended, therefore this decline has the potential to reach the origin of the extended 5th wave, which is at 1.6171. This is just in front of the 61.8% of 1.5491-1.7159 at 1.6128. Potential support prior to that level is the 50% at 1.6325 (11/19 low is at 1.6316).” These mentioned levels are potential support if 1.6488 gives way.
Strategy – Bullish against 1.6488, target TBD
Commentary – We wrote last week to “expect some consolidation/pullback in wave iv of c before a decline completes the entire correction from near 1.5000. 1.3880 is the 61.8% of the previous rally and 1.4000 is former congestion and a psychological level. Near term resistance is in the 1.4430/1.4500 area.” The EURCAD is likely topping in wave iv of C right now. Look for a drop below 1.4162 to complete the corrective decline.
Strategy – Get bullish in 1.4000/1.4100 area, against 1.3285, target above 1.5000 (and much higher)
Commentary – We maintain that wave c of larger wave 2 within a 5 wave bullish cycle is underway towards below 1.8209. A potential terminus for wave 2 is 1.7893. This is where wave c would equal wave a. Near term, we expect price to remain below 1.9167. Do not be fooled by a break of the 200 day SMA (shown on the chart). We do expect that price breaks lower but then reverses higher from the mentioned objective. The alternate count treats the consolidation since the September high as a triangle. Under this scenario, the EURNZD would continue to consolidate within the boundaries of the triangle before a thrust higher.
Strategy – Flat