FX.co ★ Elliott wave analysis of EUR/NZD for August 27, 2014

Today's support and resistance levels:

R3: 1.5830

R2: 1.5800

R1: 1.5764

Current spot: 1.5744

S1: 1.5714

S2: 1.5692

S3: 1.5663

Technical summary:

Key resistance at 1.5867 rejected prices again. We have seen an unexpected deep correction. But as long as important support at 1.5692 protects the downside, we regard this decline as part of a new impulsive rally to above key resistance at 1.5867. In the short term, we would like to see a break above 1.5764 and more importantly above 1.5816 for a new strong test of 1.5867, but only a clear break above here unlocks the upside potential. On the other side, only an unexpected break below 1.5692 will delay the expected upside pressure for a move closer to 1.5663.

Trading recommendation:

We are long in EUR at 1.5725 with stop place at 1.5690. If you are not long in EUR yet, then buy a break above 1.5764 or above 1.5867 with the same stop at 1.5690.