EUR/JPY
With the clear break below 113.99 we have got confirmation, that wave 4 is indeed developing. As a minimum target for this wave 4, I expect it to correct 23.6% of wave 3, which should take us down to 112.30, that is a common corrective target for an extended wave. However, for the short term I'm looking for a small rally towards the 114.58 - 114.61 area as a b-wave and then a final c-wave down to 112.30 from where I will turn our focus towards the upside again. That said, we shall remember that 4 waves often is very complex in their structure, which easily could be the case here too.
EUR/NZD
The red wave ii correction did go for the slightly deeper corrective target near 1.5671, where it would have corrected 70.7% of red wave i. The 70.7% corrective target is pretty common in the FX-market. With a low at 1.5688 I do think the red wave ii correction is over and a new rally just ahead. However, we still need a break above 1.5908 and more importantly 1.5988 to confirm that a low has been seen. For the short term we will likely see minor support in the 1.5776 - 1.5786 area protect the downside for a break above 1.5835, which would call for a rally higher towards at least 1.5892 and possibly even higher towards the all important resistance at 1.5988. The risk is a break below 1.5738, that would call for a move closer to 1.5671 before we can expect a new rally higher.
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