FX.co ★ Elliott Wave analysis of EUR/NZD for December 6, 2013

Today's Support and Resistance levels:

R3: 1.6775

R2: 1.6721

R1: 1.6690

Current Spot: 1.6657

S1: 1.6621

S2: 1.6598

S3: 1.6580

Technical summary:

After slightly deeper correction towards 1.6522, we saw a new impulsive rally above resistance at 1.6635 and it should only be a matter of time before the next impulsive rally higher towards at least 1.6919 is seen. A break above minor resistance at 1.6690 will be the first indication, that the next impulsive rally has begun. However, as minor resistance at 1.6690 protects the upside we could see a little more downside correction, which a break below 1.6621 will confirm for a move closer to 1.6580 before up in the next impulsive rally. Under no circumstances it can break below 1.6522 in this scenario.

Trading recommendation:

Stay long EUR from 1.6605 and move your stop higher to 1.6520. If you are not long EUR already, then buy EUR near 1.6580 or upon a break above 1.6690 with the same stop at 1.6520.