After a little detour to 125.22 first, we where ready for the powerful decline in wave c of the second zig-zag. As we have taken out support at 121.26, which marked the 23.6% corrective target of wave 3, we should now be looking for a continuation down to 117.28, where wave 4 will have corrected 38.2% of wave 3. The big question now should be, whether we do need another x-wave first and then the last zig-zag down to reach our target? As long as minor resistance at 120.87 and more importantly 121.40 protects the upside we does not need another x-wave to fulfill our target at 117.28. However, if we break resistance at 121.40 we already are building this x-wave and should see a move closer to 122.42 and maybe even up to 124.05 if it becomes extreme, before the last zig-zag combination down to our target at 117.28.
EUR/NZD
My call for a minor correction to 1.5849 before the next powerful decline worked perfectly. We saw a move to 1.5851 (just two very small pips above the ideal target) before the floor was draged away for a powerful decline. Short term I'm looking for minor support at 1.5637 to protect the downside for a move closer to 1.5752 before the next powerful decline sets in, for a move lower towards 1.5300. Short term a break above 1.5671 will confirm the minor rally to 1.5752. That said we must accept the possibility of a direct break below 1.5592 leaving us with only a sub-normal correction, before the next decline towards 1.5300.
Nice call Surfer!!
ReplyDelete