EUR/JPY
With the clear break above 119.50 we should focus on the next target for wave v of 3, which will be in the area of 121.18 - 121.34. As we are getting close to the possible top of wave 3 we should also be careful not to think, that this rally will just keep on going higher and higher, the first warning, that we have seen the top of wave 3 will be a break below 118.57 and more importantly a break below 117.63, which will call for a flat correction in wave 4 down to at least 115.99 and more likely down to 113.55. But for now we should stay focused towards the upside for a move higher towards the ideal target area between 121.18 - 121.34.
EUR/NZD
The warning from the "Hidden Divergence" did a perfect job, in telling us that this rally would become very powerful. We are already back at the middle of the base channel, but I'm not sure, that there will be time for a prober correction before the next move higher. The risk is we will only see a minor correction down to 1.5912 and maybe down to 1.5879 before the next move higher towards 1.6087 and 1.6217. Longer term I'm looking for a rally higher towards 1.6772, a target that will be confirmed once resistance at 1.6217 is broken.
Hi EWS,
ReplyDeleteAre you more bearish after the strong thrust lower in the GBP?
Todd