FX.co ★ Elliott wave analysis of EUR/NZD for October 13, 2015

Technical summary:

Wave iv has become a flat correction, which alternates nicely with wave ii that was a simple zig-zag correction. Once wave iv is over, we are still looking for one final dip closer to the downside target at 1.6781 where we expect a bottom to be found for a nice strong rally back to at least 1.8020. If a more complex correction is about to unfold in the bigger picture, resistance at 1.8020 is unlikely to be broken. However, for now we should stay focused towards the downside test of 1.6780 as long as resistance at 1.7125 protects the upside.

Trading recommendation:

We will buy EUR at 1.6785 or upon a break above 1.7125 (one order done cancels the other) stop will be placed at 1.6685.