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Elliott wave analysis of EUR/NZD for September 26 - 2016

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EUR/NZD - Weekly

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EUR/NZD - 4 Hourly

Wave summary:

With the break above 1.5515 our preferred count calling for one final decline closer to 1.4705 was invalidated. We have been back to re-analyzing and re-counting the decline from 1.6931 and the best fit seems to be that wave ii did unfold as a triangle that started at in early July at 1.5072 and completed with the test of 1.5522 in late August and the decline from 1.5522 to 1.4989 was the final wave v to complete the long term corrective decline from 1.9023 and is now setting up for a new long term impulsive rally that ultimately should break above 1.9023.

Of course, this rally will not be in a straight line, but after a minor consolidation near 1.5515 the next impulsive rally towards at least 1.5969 should be expected.

This could prove to be a very good long term trade.

Trading recommendation:

Our stop + revers at 1.5515 was hit and we are now long EUR from 1.5515 and will place stop at 1.5120. If you are not long EUR yet, then but near 1.5400 or upon a break above 1.5553 and start by using the same stop at 1.5120. Expecting to move it higher soon.

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