Monday, August 8, 2016

A Complete Cycle In EurNzd. The Bulls Are Knocking

Elliott wave theory, among other things, gives information on when the price of a financial instrument is almost over and why market participants should prepare for an important move in the market.
Elliott wave defines market cycles technically and what move should follow.

The chart below shows that Eurnzd may have completed a cycle and a large move upside could follow in few years to come.

The cycle which, if completed already, would have lasted for about 14months. The cycle may have completed at 1.51 in early April 2015 as indicated by the arrow in the chart below.

The chart below shows the sub-waves contained in the intra-day moves that followed the expected STOP.

Price rallied after the end of the cycle in a typical impulse move exactly what can be described as the first prove of the cycle termination.

A double zigzag dip quickly followed, few pips shy of 61.8% retracement of the first wave.

The zigzag as clearly shown below was resisted by 1.5400-30 which has now become an intra-day support zone

Price made an initial attempt to break out of the channel  but has now dipped to 61.8% retracement of the intra day breakout push.

There is a strong evidence that price may not come back to 1.51 and could rally to 1.66 and beyond.

We are keeping a close look and will be having an intra-day approach to be part of the bullish ride if price satisfies our entry levels.

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