Elliott wave analysis of EUR/NZD for January 21 – 2015
January 21, 2015 8:20 am
Technical summary:
The rally of the 1.4788 low has been nice and strong, but we have to keep in mind, that this rally is only a part of the red wave iv correction and once this correction is over a new decline to new all time lows is expected. Looking at red wave ii, it was simple zig-zag correcting most of red wave i, which means that red wave iv should be shallow and only correct a minor part of red wave iii. We have already seen the 23.6% corrective target at 1.5112 and it looks like a continuation higher towards the 38.2% corrective target at 1.5312 could be seen, but we should not become stubborn if prices begin to turn lower.
Trading recommendation:
We are long EUR from 1.4855 and will move our stop higher to 1.5000 and place our take profit + revers at 1.5145
The material has been provided by InstaForex Company – www.instaforex.com
Technical summary:
The rally of the 1.4788 low has been nice and strong, but we have to keep in mind, that this rally is only a part of the red wave iv correction and once this correction is over a new decline to new all time lows is expected. Looking at red wave ii, it was simple zig-zag correcting most of red wave i, which means that red wave iv should be shallow and only correct a minor part of red wave iii. We have already seen the 23.6% corrective target at 1.5112 and it looks like a continuation higher towards the 38.2% corrective target at 1.5312 could be seen, but we should not become stubborn if prices begin to turn lower.
Trading recommendation:
We are long EUR from 1.4855 and will move our stop higher to 1.5000 and place our take profit + revers at 1.5145
The material has been provided by InstaForex Company – www.instaforex.com
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