Wave Summary:
The odds do favor that an expanded flat wave ii ended at 1.5990 and wave iii higher will now develop to do a rally towards at least 1.7116, which is the first extension target for wave iii. Whenever wave two becomes an expanded flat correction, we should expect wave three to extend and in the case EUR/NZD the first extension target at 161.8% the length of wave i will be seen at 1.7116, which by the way also marked a 38.2% corrective target of a rally of wave 1.
So, an expected bottom has been found at 1.5990 for a breakout above 1.6246 as the first indication that the bottom is in place and wave iii higher is developing.
Trading recommendation:
We will buy on a breakout above 1.6246 and place our stop at 1.6010.
The material has been provided by InstaForex Company - www.instaforex.com