EURNZD is one of the FX charts with a clear Elliot Wave structure at the moment. The decline from the high took the shape of a classic Elliot Wave impulse pattern, labeled i-v.
According to EW theory, a three-wave correction in the opposite direction follows every impulse pattern. That's why we're anticipating at least a-b-c zigzag move to the upside.
However, once the correction is completed, the major trend resumes in the direction of the impulse, which is bearish in the EURNZD case.
Trade Idea: - Short-term buy from or below the current level - Longterm short once we see at least three-wave move to the upside.