Elliott wave analysis of EUR/NZD for October 12, 2018

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It’s still unclear whether blue wave ii completed with the test of 1.7719 and blue wave iii higher to 1.8030 and 1.8369 is developing. Or a more complex correction is developing in blue wave ii.

The minor rally from 1.7719 to 1.7882 does look impulsive, it was just a bit shorter than we normally would expect. On the other hand, this is also the reason, why we are concerned as all options remain wide open.

A break above resistance at 1.7851 will favor the bullish view, while a break below 1.7734 will favor the a more complex correction unfolding.

R3: 1.8030

R2: 1.7960

R1: 1.7929

Pivot: 1.7851

S1: 1.7792

S2: 1.7774

S3: 1.7734

Trading recommendation:

We will buy a break above resistance at 1.7851 and place our stop at 1.7715

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