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Elliott wave analysis of EUR/NZD for August 1, 2016

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Wave summary:

The correction in wave ii took a long way and declined to 1.5411 (just above the 61.8% corrective target at 1.5365). The decline to 1.5411 could be enough, but then a break above minor resistance at 1.5538 and more importantly above 1.5640 will be needed to confirm the corrective low is in place for the next impulsive rally higher towards 1.6652.

That said, we should allow for a little more downside pressure closer to the ideal corrective target at 1.5365 as long as minor resistance at 1.5538 holds firm.

Trading recommendation:

Our stop at 1.5570 was hit. We are looking for a new buying opportunity at 1.5370 or upon a break above 1.5538 with stop placed at 1.5325.

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