FX.co ★ Elliott Wave analysis of EUR/NZD for August 9, 2013

Today's Support and Resistance levels:

R3: 1.6946

R2: 1.6872

R1: 1.6796

Current Spot: 1.6743

S1: 1.6674

S2: 1.6623

S3: 1.6572

Technical summary:

We are looking for a C-wave of the major flat correction to develop towards strong support at 1.6225. In the short-term prospect, we expect minor resistance at 1.6796 to protect the upside trend from a break below 1.6703 and more importantly a break below 1.6673, which confirms next impulsive decline towards 1.6414. However, if resistance at 1.6796 is broken it will delay the downside pressure and we will see a move slightly higher towards 1.6872, but under no circumstance for a break above 1.6946 it will be allowed to invalidate this bearish count.

Trading recommendation:

Stay short on EUR from 1.6760 with a 1.6875 stop. If you have not been short on EUR yet then sell upon a break below 1.6703 with the same stop at 1.6875.