EURNZD looks to be in a bullish trend, and as we analyze further with no overlaps, which would put in jeopardy our hourly view. With this we mean overlaps between waves 1 and 4 of all degrees.

As we know if an overlap comes within an impulse between waves 1 and 4, then the count may be invalidated or another specific pattern can be in progress like an EW ending or leading diagonal.

That said, currently, we see a nice and strong reaction from latest swing low at 1.6968 level, which can suggest a completed three-wave correction and more upside to follow, ideally in a five-wave fashion. If so, then we see the minor drop as part of a corrective wave 2, which can see support and a new turn higher around the 1.7030 region (area of the Fibonacci ratio of 61.8, which can push the price up).


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