Elliott Wave analysis of EUR/NZD for January 8, 2014

Today's Support and Resistance levels:

R3: 1.6546

R2: 1.6503

R1: 1.6470

Current Spot: 1.6445

S1: 1.6398

S2: 1.6366

S1: 1.6285

Technical summary:

Red wave iv likely ended at 1.6503 and red wave v is likely developing, however, we still need a break below 1.6398 to confirm that red wave v is developing for a decline towards 1.6200. As long as support at 1.6398 protects the downside we could see a new test of 1.6503 with a very slim chance of a move higher towards 1.6546, but that is less likely. 

Trading recommendation:

We are short EUR from 1.6470 with stop placed at 1.6600. If you are not short EUR already, then sell a break below 1.6398 with the same stop at 1.6600.