FX.co ★ Elliott wave analysis of EUR/NZD for August 31, 2015

Technical summary:

The 38.2% corrective target has been met at 1.7170 (the traded low till now has been 1.7197). We are still looking for more downside correction towards the former wave iv at 1.6599 before the correction from 1.9023 is over and wave (v) will be ready to take over. That means we have to be aware of a possibility that no more correction is needed in wave (iv). But we think that this is unlikely to happen.

In the short term, we expect resistance at 1.7649 to protect the upside for a decline below minor support at 1.7287 confirming a continuation lower towards 1.6599.

Trading recommendation:

We are short EUR from 1.7425 with stop placed at 1.7650 and take profit placed at 1.6625.