My preferred count shows that a wave iv triangle is developing and we are currently seeing wave d of the triangle developing. A triangle under the Elliott Wave Principle has five waves and is a continuation pattern, which is why we expect one last thrust towards the upside once this triangle is finished. Short term we expect to see minor support at 127.83 protecting the downside for a break above 128.52 confirming a continuation higher towards 129.39 and likely closer to 130.00 before wave d is over and the final wave e develops to the downside.
Yesterday we did see a minor break below 1.5255, which under normal conditions would call for a new low below 1.5236, but the decline from 1.5395 stopped dead at 1.5252 and rallied in an impulsive manner. Therefore we think that we saw a rare Fifth wave failure, which is a sign of underlying strength. However, to confirm the fifth failure we need a break above 1.5395. Short term we expect minor support at 1.5324 to protect the downside for the next move higher towards 1.5405, from where we should expect a new set-back towards 1.5324 before we get to see some real acceleration towards the upside and a rally towards 1.5611.
Hi EWS ,
ReplyDeletePlease could you let me know why could there be a setback from 1.5405 towards 1.5324 , is this because of wave 2 of 3?
In your previous posts wave 3 had an extended target of 1.6145. I would like to how did you arrive at 1.5611 as first targets ?
Sorry for the questions its just my curiosity to learn your wave analysis.
Thanks.
Hi EWS,
ReplyDeleteThe EUR/NZD pair has been zooming like a rocket after a couple of hours since my query.
Please kindly let us know what can we expect after target of 1.5611 are reached, do we expect a minor set back before another rally to higher level ?
Hi Kiran,
DeleteAs you have seen, there was no time for a correction back to 1.5324. As you say I was expecting wave 2, but no time for anything that Deep.
I'm still looking for a rally way beyond 1.5611 and would expect a move higher towards 1.6145 and beyond that level too.
You likely have seen my long term Count for EUR/NZD if not you can see it here:
http://theelliottwavesufer.blogspot.dk/2013/03/long-term-elliott-wave-analysis-of.html
If this long term Count is correct we should see a rally in EUR/NZD for years to come, that said we will of cause see major corrections to the overall uptrend.
Hope that brings some light to my long term expectations for EUR/NZD. Otherwise don't hesitate to say so and I will do my best to answer.
Kind regards
EWS