EURNZD Confirms Uptrend, but Correction is Likely

17 thg 8, 2020

The EURNZD 4 hourly chart above visualizes the advance between July and August 2. More importantly, it reveals that the rally is a textbook five-wave impulse. The pattern is labeled (i)-(ii)-(iii)-(iv)-(v).

According to the Elliott Wave principle, this means two things: first, that EURNZD is in an uptrend; and two, that a three-wave correction can be expected before that uptrend resumes.

However, if the count above is correct, it makes sense to expect a decline to wave (iv) low in the mid-term. Long positions in this area would not provide a much better risk/reward ratio than currently available.

- Invalidation level is the red line on the chart
- Entry is the green line which has not been triggered.

What is your view on EURNZD?

Thanks for reading!
Veejahbee.