FX.co ★ Elliott wave analysis of EUR/NZD for November 21 - 2014

Today's support and resistance levels:

R3: 1.5903

R2: 1.5878

R1: 1.5838

Current spot: 1.5809

S1: 1.5772

S2: 1.5735

S3: 1.5680

Technical summary:

The decline from 1.6041 has been much stronger and deeper than expected. This is worrisome, but we have to remember, that second waves are allowed to correct 100% of the first wave, but they can not break the origin of the first wave by even a single pip as that will invalidate the bullish count. So, the origin of blue wave i at 1.5680 needs to protect the downside or the above count is invalidated calling for a 1.5709, but not below 1.5526 (wave ii of the expanded diagonal).

Trading recommendation:

We will await signs of a bottom before engaging to this market.