Traders keeping a close eye on EURNZD have noticed the presence of incomplete bearish sequences in the cycle from the peak on August 21st. This has led to a bearish outlook for the pair, with a target of 1.7329 area. Traders have been advised to avoid buying and instead focus on short positions.
A recent correction in the market led to a selling zone being reached. As predicted, the pair found sellers and reacted from the blue box area. This has confirmed the validity of the Elliott Wave forecast and trading strategy.
Looking at the Elliott Wave 1 Hour Chart, it is evident that the pair is in wave ((ii)) recovery, which is correcting the cycle from the 1.774 peak. The price has reached an extreme zone within the 1.7579-1.7693 range. Traders are advised against buying the pair and instead favor the short side from the blue box area, which is an equal legs zone. As the main trend is bearish, it is expected that there will be at least 3 waves pulling back from the selling zone.
Once the decline reaches 50 Fibs against the (b) blue low, traders are advised to make their short positions risk-free by putting the stop loss at break-even. This will allow for partial profits to be taken. However, it is important to note that a break of the 1.618 fib ext at 1.7693 would invalidate the short trades.
Traders are reminded of the simplicity of the trading and understanding of the charts provided. A red bearish stamp along with a blue box indicates a selling setup, while a green bullish stamp with a blue box indicates a buying setup. Charts with black stamps are not tradable.
The pair has experienced a successful reaction from the selling zone, confirming the accuracy of the Elliott Wave analysis and trading strategy. The recovery completed at the 175.88 high, and there has been a good reaction from the selling zone. The decline has reached and exceeded 50 Fibs against the connector’s low. As a result, traders who took the short trade are now enjoying profits and have positioned themselves in a risk-free position. It is important to note that as long as the pair remains below the 175.88 high, the next leg down towards new lows could be in progress.
The Elliott Wave analysis of EURNZD suggests a bearish outlook for the pair, with a target of the 1.7329 area. Traders are advised to avoid buying and instead focus on short positions, particularly from the selling zone. The trading strategy involves making positions risk-free once the decline reaches 50 Fibs against the (b) blue low and taking partial profits. However, it is crucial to monitor the market closely and be aware of any invalidation signals that may arise.
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