2018-06-15
The ECB's call to end it QE at the end of 2018 hit the EUR hard and of course, EUR/JPY got hit too. We were expecting a decline soon, but not of that magnitude and not below the 128.07 as that tells us that wave ii still is in motion. With wave ii still in motion, we can see now that it has turned into an expanded flat correction. the strong decline, seen after the ECB announcement, is wave c of ii, which means wave ii likely completed in early Asian trading with the test of 127.68.
If this count is correct, then we should see a break above minor resistance at 128.17 soon and more importantly a break above resistance at 128.60 adding confidence in this count. As strong as the decline from 130.36 was, as strong can the recovery be - Action/reaction.
R3: 128.95
R2: 128.60
R1: 128.17
Pivot: 127.90
S1: 127.68
S2: 127.43
S3: 126.76
Trading recommendation:
After taking a little profit for half a position and taking a loss on the other half, we bought EUR again at 129.50 and we will place our stop at 127.60 If you are not long yet, then buy near 127.90 or upon a break above 128.17 and use the same stop at 127.60.
Elliott wave analysis of EUR/NZD for June 15, 2018
2018-06-15
EUR/NZD has made a new low since the 1.7294 peak and this now seriously questions our former count. Yesterday's break to new lows does open the possibility of an alternate count. This count calls for more downside closer to 1.6416 and maybe even a decline to 1.6338 if the former low at 1.6517 is broken.
Only a direct break back above resistance at 1.6703 will ease the downside pressure and more importantly, a break above resistance at 1.6842 will reinstate the bullish outlook, calling for a continuation higher to 1.7294 on the way higher to 1.8437.
R3: 1.6789
R2: 1.6703
R1: 1.6653
Pivot: 1.6617
S1: 1.6566
S2: 1.6517
S3: 1.6459
Trading recommendation:
Our stop at 1.6685 was hit for a loss of 80 pips. We will stay sidelined for now.
Get Bonus No Deposite in your Trading Account now and add this currency pair to your forex portfolio, enjoy your trading with us!
No comments:
Post a Comment