FX.co ★ Elliott wave analysis of EUR/NZD for October 20, 2016

Wave summary:

The corrective decline in wave (ii) finally looks complete with the test of 1.5066. We will be looking for a break above minor resistance at 1.5271 as the first indication that wave (iii) higher finally has taken over for a rally to 1.5764 and higher to 1.6850.

It will take an unexpected break below support at 1.4989 to invalidate the bullish count, but even if such an unexpected break is seen the potential downside should remain limited.

Trading recommendation:

We are long EUR from 1.5285 with stop placed at 1.4985. If you are not long EUR yet, then buy a break above 1.5271 and use the same stop at 1.4985.