Euro Crosses Trending Up but Watch for Short Term Corrections
EURGBP
Either a triangle or flat is unfolding as wave 4 within the 5 wave advance from .6535. In the case of a flat, a wave B high is likely in place at .8033 and wave c is underway now and will end below .7766. In the case of the triangle, we'll see more range trading before a thrust higher in wave 5 completes the entire advance from .6535. The next good opportunity will come when wave 5 begins. It is best to stand aside for now and let this correction unfold.
EURCHF
The 1.5326-1.6376 rally is in 5 waves, therefore expectations are for a similar 5 wave rally to succeed the corrective decline from 1.6376. The pair has already come into the first support area; the 4th wave of one less degree at 1.6066. Therefore, it is possible that a low is in place at 1.6025. A bullish bias is warranted against there. If price comes under there, then try again in the the Fibo support zone of 1.5728-1.5975.
EURCAD
Longer term, there is no change to the call for a push through 1.6324. Near term, the pair could slip below 1.5663 in order to complete a small second wave. Still, the bias is bullish above 1.5278 as a long term bull trend is underway.
EURAUD
The trend is bullish as long as price is above 1.5922 but price should remain above 1.6257. Since 1.5491, advances have unfolded in 5 waves and declines in 3 waves (the drop from 1.7426 is in 5 waves but is a C wave that completes a flat correction). As long as the EURAUD is above 1.5919, there is longer term potential for the pair to exceed 1.75.
EURNZD
There is no change to our long-standing bullish bias. The advance from the December 2005 low to the July 2006 high was in 5 waves and the decline that followed was in 3 waves. As such, the trend is up. Very short term, the wave count is not entirely clear but there is potential trendline support (as shown above).
TREND ANALYSIS is based on a rolling pivot model. LONG TERM TREND is determined by the last 3 months of price data (high, low, close). SHORT TERM TREND is determined by the last 4 weeks of price data (high, low, close). R3, R2, R1, PL, PH, S1, S2, and S3 are provided to aid in identifying entries and exits. These are objective measures and our subjective analysis (STRATEGY) may differ.
DailyFX
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