FX.co ★ Elliott wave analysis of EUR/NZD for July 23, 2014

Today's support and resistance levels:

R3: 1.5573

R2: 1.5539

R1: 1.5513

Current spot: 1.5487

S1: 1.5485

S2: 1.5465

S3: 1.5447

Technical summary:

As resistance at 1.5598 protected the upside, the correction from 1.5627 went for the lower part of the correction target area near 1.5485. When this support is tested, the wave ii correction has fulfilled its requirements and should soon see a rally above minor resistance at 1.5553 and more importantly a break above resistance at 1.5598 confirming that wave iii is developing for a rally to at least 1.5885 and possibly even higher.

Trading recommendations:

We are long in EUR from 1.5525 with stop placed at 1.5395. If you are not long in EUR yet, then buy EUR here or upon a break above 1.5553 with the same stop at 1.5395.