Euro Commodity Crosses Correcting Before Next Leg Up

EURAUD

EURCAD

EURNZD

Commentary – We wrote last week that “we expect waves 4 and 5 to unfold before a larger setback that we will use to add to the bullish position initiated last week.”  Wave 4 did unfold and ended at 1.6171 and wave 5 is underway now and should exceed 1.6596 before the mentioned larger setback is expected.

Strategy – Remain Bullish, against 1.5491, target TBD

Commentary – The long term bull run is underway as there are 5 waves up from the 11/7 low.  A fairly deep correction may be underway now.  In fact, the 38.2% of the entire move is not even until 1.4005.  The former 4th wave is at 1.3904 and the 61.8% is at 1.3731.  We’ve obviously no idea how far the corrective decline will go, but the decline should consist of 3 legs and the first leg is underway now. 

Strategy – Waiting for completion of larger wave 2 (at mentioned levels) in order to get bullish  

Commentary – A series of 1st and 2nd waves may be complete and the EURNZD could be at the beginning of a 3rd wave rally.  If this count is correct, then price is likely to exceed 2.0185 while 1.8556 remains intact.  Very short term, a drop to 1.8939 (61.8 of 1.8556-1.9556) may be needed in order to complete a small wave c within the a-b-c correction from 1.9556.  

Strategy – Remain Bullish, against 1.8556, target 2.0170