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Thursday, September 6, 2012

EUR/NZD - Long term picture/ A massive rally ahead

 EUR/NZD (Monthly) - Over the last 20 years we have seen a giant Flat correction developing. The flat began way back in August 1992 and ended in August 2012 (20 years to exact). Red wave C was equal in length to red wave A. Red wave B it self was a giant flat correction running from March 1997 to February 2009.
Looking at red wave C we can see a very clear Ending Diagonal as the final and fifth wave down from 1.9571 to 1.4968.
 EUR/NZD (Weekly) - Zooming in on red wave C down from 2.5773 we can count a nice five wave decline, as we would expect for a C-wave, We have some nice wave relationships all pointing in the direction, that the count is valid.
EUR/NZD (4 Hourly) - From the bottom at 1.4968 we have seen a nice impulsive rally, which isn't over yet, also confirming that we have seen a long term bottom at 1.4968 and that a multi year rally higher has begun. A rally that ultimately should take us above the top at 2.6917. That would be some kind of ride...
You don't need to jump on the train just yet if you haven't done so already. Wait for wave 2 once it develops and lets see if we can fine tune a bottom at that point for a nice big rally and lots of profit in wave 3.

2 comments:

  1. Hi, can you do me a favor please and do an EW analysis of EURAUD? I cannot trade EURNZD, only EURAUD. I thought AUD and NZD are somewhat positively correlated and we can expect a similar kind of long term up trend starting in the near future?

    Thanks in advance!
    Heiko

    ReplyDelete
  2. Hi Heiko,

    Of cause I will do that for you. Give me till tomorrow to look at it and post my long term view on EUR/AUD.

    Kind regards
    EWS

    ReplyDelete