[EURNZD, 01/16/2019] Price movement prediction - Elliot Wave

Based on Elliot Wave Theory, price has finished wave 3 and met minor support. Price needs to pull back about 100 pips in order to drop further. In addition, H1 MACD and RSI have formed bullish divergence that support this assumption.

Wait until the pull-back is finished to enter short position is safest, or enter short when D1 support 1.67130 is confirmed breached. TP 1.66500

Risk takes might take long position to trade the pull-back, however downside risk is far greater so proceed with caution.

Trade active:

1.67130 is breached. Trade is active. TP 1.65700

Trade active:

Price bounced up by another support level on D1 at 1.66945. Considering cancel the current trade if the buying power is big, then wait to sell after pull-back.

Trade closed manually:

Pull-back demand is now confirmed. Just cancelled current position to wait for sell entry after pull-back.

Comment:

Trade the pull-back is far riskier than selling. So now we shall wait....

Comment:

I will open sell at 1.68750-1.68800.
Reasons:
1. Daily key level
2. Fibo 38.2% resistance
3. EMA 200 resistance
4. RSI is approaching overbought

Trade active:

Sell entry re-activated. Look like our old resistance level worked well.

Comment:

Price is currently re-testing resistance at 1.68800. Watch closely.

Trade closed: stop reached:

Stop reached due to weak NZD.