Monday, August 25, 2014
EUR/NZD - Wave 2 ended at 1.5693
We where looking for a final decline in wave 2 to 1.5706, which was the 38.2% corrective target of the impulsive rally from 1.5398 to 1.5898. The minor spike below 1.5706 is a perfect ending of this wave 2 correction and we should now be looking for wave 3 higher towards at least 1.6187 and more likely even higher towards 1.6496.
Short term a break above minor resistance at 1.5830 and more importantly a break above resistance at 1.5866 will confirm that wave 3 is developing.
Only an unexpected break below 1.5693 will delay the expected upside for a move closer to the 50% corrective target at 1.5648, but the is not my preferred scenario.