EURAUD
EURCAD
EURNZD
Commentary – We wrote last week that “the turn is underway now. We expect the rally to target at least 1.6222 but the bottom in place may be a major one because of the bounce from a trendline dating to 1989”. After basing with a series of 1st and 2nd waves, the pair has vaulted higher in a 3rd wave that should carry to at least 1.6153 short term (161.8% extension of 1.5491-1.5839-1.5592). The pair is close to this level. We expect waves 4 and 5 to unfold (wave 4 may be happening now) before a larger setback that we will use to add to the bullish position initiated last week.
Strategy – Remain Bullish, against 1.5491, target TBD
Commentary – We wrote last week that “the EURCAD pair could be forming a significant bottom. We advocate a long term bullish stance against 1.3493.” Apparently, a lot of traders thought the same thing because 1.3493 was taken out and the EURCAD traded down to 1.3287 before rallying hard to above 1.3800 (currently). Similar to the EURAUD, the short term charts are constructive and favor a bullish bias, against 1.3612.
Strategy – Bullish against 1.3612, target much higher.
Commentary – We wrote last week that “an expanded flat may be unfolding from 1.9161 and that the bias is bullish as long as price is above 1.8208. A rally through 1.9423 instills confidence in the bullish bias. This could be the start of a long term bull towards 2.0000 and higher.” The outlook has not changed. The rally has yet to exceed .9423 but the EURNZD is on its way there. Price should remain above 1.8556 if the most bullish count is to remain favored (shown).
Strategy – Remain Bullish, against 1.8208, target 2.0170