FX.co ★ Elliott wave analysis of EUR/NZD for October 22 - 2014

Today's support and resistance levels:

R3: 1.6035

R2: 1.6015

R1: 1.5978

Current spot: 1.5954

S1: 1.5931

S2: 1.5906

S3: 1.5860

Technical summary:

The break below support at 1.5949 has invalidated the immediate bullish count. The question now is whether a series of wave one's and two's is developing or we are looking at an expanded diagonal. If we are looking at a series of waves one's and two's the decline from 1.6445 must stay above 1.5717 for a break above 1.6082, which calls for a new impulsive rally to 1.6446 and higher to 1.6800. If however support at 1.5717 is broken, the count switches to the expanding diagonal count and call for a continuation lower to 1.5660 before the final rally higher to 1.6800.

Trading recommendation:

We will buy EUR at 1.5725 with stop at 1.5710 or upon a break above 1.6082.