EURAUD
EURCAD
EURNZD
Commentary – We wrote last week that “the rally from 1.5631-1.6072 is a 5 wave rally, indicating that at leas one more similar rally will occur. A push through 1.6072 exposes former support (may now be resistance) at 1.6400. The EURAUD did rally but reversed prior to our 1.6400 objective. The top came at 1.6290 and we expect one more low to register (below 1.5631) before a bottom and reversal.
Strategy – Flat
Commentary – We are showing the same chart and commentary from last week since we believe that the EURCAD is forming a significant bottom. We advocate a long term bullish stance against 1.3493. The rally from the October 2000 low to the February 2004 high is in 5 waves and the decline into the March 2006 low is in 3 waves. The up-down sequence since then may be waves 1 and 2 in the next bull cycle.
Strategy – Long term - bullish against 1.3493, target much higher.
Commentary – The EURNZD has diverged a bit from the EURAUD (as AUD has outperformed NZD). We wrote last week that “the rally from 1.8208 looks impulsive and action since has been a consolidation of that rally. An expanded flat may be unfolding from 1.9161. If so, then price is likely to come under 1.8820 before the next bull leg.” Price just recently dropped below 1.8820, and the flat correction may be close to an end. The bias is bullish as long as price is above 1.8709.
Strategy – Remain Bullish, against 1.8208, target 2.0170