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Elliott wave analysis of EUR/NZD for August 18 - 2015

2015-08-18-EURNZD-4H.png

Technical summary:

The decline from 1.7103 has become too deep to be part of wave B. It's more likely that wave C is already developing form 1.7103 for a decline towards 1.6327 and possibly even lower to 1.6035 before the next impulsive rally higher should be expected.

We have been fighting to figure out what the correction from the top of wave (v) 1.7054 would look like. The break back above 1.7054 told us that an expanded flat correction was unfolding, but wave B fell short of its ideal target at 1.7198. It has just been proved that mess with corrections is not the best idea.

Trading recommendation:

We missed our short entry at 1.7185 and will stay neutral for now.

The material has been provided by InstaForex Company - www.instaforex.com