FX.co ★ Elliott wave analysis of EUR/NZD for August 19, 2014

Today's support and resistance levels:

R3: 1.5844

R2: 1.5825

R1: 1.5815

Current spot: 1.5805

S1: 1.5792

S2: 1.5758

S3: 1.5743

Technical summary:

Wave b of 2 extended higher to 1.5848. Now, we will be looking for wave c of 2 lower to 1.5675 to end the correction from 1.5898 and set the stage for a new impulsive rally higher towards 1.5898 on the way higher to 1.6205 and even higher in the longer term. In the short run, a break below 1.5792 will confirm, that wave b has ended at 1.5848 and wave c lower to 1.5675 is developing. Only an unexpected break above 1.5898 will indicate that wave 2 ended early at 1.5716 and wave 3 higher is already developing.

Trading recommendation:

Our stop at 1.5825 was hit for a small loss. We have had a nice winning streak, but instead of trying a high risk EUR-short opportunity, we will look for a new EUR-buying opportunity at 1.5685 or upon a break above 1.5898.