FX.co ★ Elliott wave analysis of EUR/NZD for October 1 - 2014

Today's support and resistance levels:

R3: 1.6294

R2: 1.6246

R1: 1.6186

Current spot: 1.6159

S1: 1.6135

S2: 1.6100

S3: 1.6083

Technical summary:

The correction in wave iv from 1.6446 has been deeper than initially expected. However, we still believe support at 1.6135 will be able to protect the downside for a break above minor resistance at 1.6186 and more importantly a break above resistance at 1.6246, that indicates that the correction is over and a new impulsive rally higher to 1.6445 and 1.6831 is unfolding. Even if support at 1.6135 should be broken, the downside potential should be very limited from here and support at 1.6083 would likely halt the decline.

Trading recommendation:

We are long in EUR from 1.5826 with stop placed at 1.6100. If you are not long in EUR yet, then buy near 1.6135 with the same stop at 1.6100.