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05.09.201607:49 Forex Analysis & Reviews: Elliott wave analysis of EUR/NZD for September 5, 2016

Long-term review

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Wave summary:

This is a most painful experience watching the extremely slow decent, which keeps the uncertainty about the preferred count high. We do not expect any real reason to change our preferred count that a long-term important low was seen at 1.5072, but we just have to accept that wave ii is dragging on much longer than expected. Under the Elliott Wave Principle second waves are allowed to correct 100% of the first wave, which means, we must allow for a second test of 1.5072, but under no circumstance can support at 1.5072 be broken as this will force a recount of the decline from 1.9023.

In the short term, only a break above minor resistance at 1.5400 will ease the downside pressure.

Trading recommendation:

We are long EUR from 1.5370 with stop placed at 1.5180. Only buy EUR at 1.5105 or upon a break above 1.5400 and start by placing your stop at 1.5060.

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