FX.co ★ Elliott wave analysis of EUR/NZD for May 5, 2015

Technical summary:

The correction from 1.4903 is becoming deeper than the first expected. It indicates that wave iii has completed just below the ideal target at 1.4983 and wave iv currently is unfolding. The correction in wave iv is approaching the 23.6% corrective target at 1.4732. A break below here will call for a continuation towards 1.4675 and possibly even lower to the 38.2% corrective target at 1.4629 before moving higher in wave v. In the short term, it will take a break above 1.4819 to confirm that the correction in wave iv is over.

Trading recommendations:

As we saw a break above 1.4895, our stop was raised to 1.4793 (10 pips below the most recent low), this stop has been hit for yet another nice profit. We will be looking for a new buying opportunity at 1.4680 or upon a break above minor resistance at 1.4819 with a stop at 1.4580.