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Elliott wave analysis of EUR/NZD for October 3, 2016

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EUR/NZD - Daily

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EUR/NZD - 4 Hourly

Wave summary:

The wave [ii] most likely has been completed with the test of 1.5298, and the wave [iii] of iii higher is now expected. We are about to enter the part of an impulsive rally that normally proves to be the strongest. We are looking for an extension towards at least 1.5969. The 1.5969 wave iii will be 161.8% the length of wave i, but we will not be surprised to see the wave iii extending even more and moving higher to 1.6491, where the wave iii will be 261.8% the length of wave i.

In the short term, we need a break above a minor resistance at 1.5440 and more importantly a break above 1.5553 to confirm that the higher wave iii is developing.

Trading recommendation:

We are long EUR from 1.5515 with stop placed at 1.5120. If you are not long EUR yet, then buy near 1.5300 or upon a break above 1.5440 and use the same stop at 1.5120.

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