EUR/JPY
We never had any follow-through towards the downside yesterday, instead we saw a break above the former top at 120.12. This break above resistance at 120.12 reinstates the uptrend for a possible move towards the next targets at 121.28 and then 121.74. Short term I would like minor support at 119.79 to protect the downside for the move towards 121.28. That said the very quick decline from 120.12 to 116.63 is not in accordance with my previous count and looks more like a part of wave 3 up from 100.32, that means we still have wave 4 to look for, but first we have to concentrate on the ongoing wave 3 and trying to determine the most likely termination point, which seems to be in the 121.28 - 121.74 area.
EUR/NZD
My call for the termination of blue wave ii was correct and we should now see a very powerful move towards the upside as blue wave iii develops. The first target for blue wave iii is at 1.6267, where blue wave iii will be equal in length to blue wave i, but normally I would expect an extension in wave three, which would call for blue wave iii to rally even higher towards 1.6542. We will of cause have to wait and see how this rally unfolds. Short term I will look for support at 1.5946 to protect the downside for the next rally higher.
I forget to ask one more thing,
ReplyDeleteThey say, wave 3rd in any impulse is never 'shortest'
Is this necessary for any Expanding or Ending diagonal, especially Expanding diagonal?
Hello Ews,
ReplyDeleteBeen a long time since I commented or ask questions!
The eur/usd has took my attention like mona lisa's painting !
I haven't read anywhere about this, I am confused, IS there could be extension of any 'expanding diagonal'?
Is it possible that A expanding diagonal could be extended??!
&
Is it necessary that 4th wave of any expanding diagonal has to make low/high than 2ed wave of expanding diagonal??
I hope, I did ask right questions
Regards
Ray
Hi Ray,
ReplyDeleteThe last question first. Wave three can never even be the shortest and it will not be that in an expanding diagonal as each of the main moves (up or down) is larger than the previouse.
Yes I don't see why you could not have extensions in an Expanded Diagonal. I would even expect extensions to be a requierment otherwise it would be difficulte for the formation to expande.
No wave 4 not have to make a new low or high below or above wave 2. Actually if it did it could not be an Expanded Diagonal, but would be an Expanded Triangle instead.
I hope that answers your quiestions?
Kind regards
EWS
Ty Ews
ReplyDelete