Our target of .6575 for the short NZDUSD position hit and therefore we are closing the position booking +84 pips. The short position was triggered on August 29 as NZD/USD was breaking a support trend line.
We are continuing to hold the long EURNZD position and we will tighten the stop loss to 1.7500 today. The 1.7500 mark in EUR/NZD is just below last week’s low. A break below this 1.7500 level will caution us to deeper losses and we will want to exit the position at that zone with a small loss. Our target level remains at 1.8000 as the entry level was 1.7570.
Though we are not specifically performing an Elliott Wave analysis on EURNZD, our viewpoint on EURUSD is that it is rallying in a larger corrective wave that may last for several weeks or months. NZD has been especially weak lately. Therefore, pairing EUR against NZD may have medium term potential.
Original EURNZD Trade Idea
Long Entry: 1.7570
Stop Loss: 1.7354 (**we are moving this to 1.7500 today)
Risk to Reward Ratio 1 to 2
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---Written by Jeremy Wagner, CEWA-M
Jeremy Wagner is a Certified Elliott Wave Analyst with a Master’s designation. Jeremy provides Elliott Wave analysis on key markets as well as Elliott Wave educational resources. Read more of Jeremy’s Elliott Wave reports via his bio page.
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