Today we will look back at an old acquaintance EUR/NZD. We will stay with the larger picture to gain insight and look at the weekly chart. EUR/NZD peaked back in March 2020 as most countries were locked down due to COVID-19. After the peak at 1.9927, EUR/NZD has been in a corrective decline of 78.6% of wave 1/. We currently see a possible S/H/S bottom that needs to break above resistance at 1.7304 as that will open the door for the next impulsive rally higher to re-visit the former top at 1.9927. Eventually, we should see a further climb to 2.4318.
That said, we have an alternative scenario which suggests a decline to 1.5595 as an X-wave. If this count ultimately proves correct, then we should expect EUR/NZD to find resistance near 2.1100 impossible to break. However, in both scenarios, we are looking for EUR/NZD to rally in the weeks/months ahead, once resistance at 1.7304 is overcome.
