FX.co ★ Elliott Wave analysis of EUR/NZD for August 5, 2013

Today's Support and Resistance levels:

R3: 1.7326

R2: 1.7263

R1: 1.7200

Current Spot: 171.23

S1: 1.7100

S2: 1.7028

S3: 1.6987

Technical summary:

We have seen the expected rally higher and have both broken the former high at 171.13 and broken above the base channel resistance line. We should see wave iii accelerating towards the upside for a test of our first target at 1.7326. However, we could easily see this rally extending further and if this is the case, we should be looking for 1.7886, as the next major target. Support is now found at 1.7028 and again at 1.6987, but we should expect corrections to be sub-normal in wave iii.

Trading recommendation:

We are long EUR from 1.6411 and will lift our stop higher to 1.6895. If you are not long EUR yet then buy close to support at 1.7028 with the same stop at 1.6895.