FX.co ★ Elliott wave analysis of EUR/NZD for November 1, 2013

Today's Support and Resistance levels:

R3: 1.6515

R2: 1.6487

R1: 1.6461

Current Spot: 1.6433

S1: 1.6390

S2: 1.6356

S1: 1.6312

Technical summary:

Support at 1.6469 was broken without troubles, and we are now close to our next target near 1.6390. We could still see a slightly deeper decline towards 1.6312 as long as resistance at 1.6485 protects the upside, before this wave ii is over and a new powerful rally higher towards 1.7424 is expected as wave iii is developing. In the longer term we are still looking for much higher levels once this new impulsive rally really gets strong development. It should also be remembered that wave 3 is the wave we really want to be exposed as this normally is the longest wave.

Trading recommendation:

Take profit on your short EUR-positions from 1.6610 here at 1.6433 for a profit. Place a new buy order at 1.6325 or upon a break above 1.6485.