EURNZD resumed upside last week after some sideways indecisive period. It now does look like price will break above the 1.67 top to complete the 5th wave of an impulsive rally that started late June.
Elliott wave theory theory, aside many other usefulness, helps to identify the trend. Specifically, it can help to identify the strongest part of a trend. In an impulsive wave trend, wave 3 and 5 are by far the strongest. Getting in to ride wave 3 will require identifying the end of wave 2 and trading wave 5 will require knowing the end of wave 4. This fact helped us to make 320 Pips profits and potentially, 550 pips in less than 2 weeks. The chart below was the EURNZD bullish setup sent to Classic wave trading premium Fx alert subscribers.
Entry price was at 1.6388. Price has since been making a way upside to complete the 5th wave as expected. Second target at +320 Pips was achieved. Final target was set at 1.6840 (+550 pips) to take even more. If the final target is reached, that will mean a 1:3 R/R trade. This one is now risk-free.
The 5th wave could go farther than our final target. 1.70-1.72 are likely technical targets. Once the 5th wave is complete, the next action is to wait and look for a bearish opportunity. This impulse wave is the wave C of a long term correction. Only time will tell how this will play out.
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