FX.co ★ Elliott wave analysis of EUR/NZD for October 21, 2016

Wave summary:

We are looking for confirmation that the decline in wave (ii) from 1.5746 is complete. The first strong indication this is the case, will be a firm break above 1.5292, while a break above 1.5549 will confirm that wave (ii) has completed and wave (iii) higher towards at least 1.6396 and above is developing.

Longer term, we are looking for a break above resistance at 1.6931 and 1.9023, but first we need to bottom to be confirmed by a break above 1.5764. From a classical technical point of view a possible Inverse S/H/S bottom could be building, with the neckline resistance seen at 1.5764.

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 1.5292 and use the same stop at 1.4985.