Today's Support and Resistance Levels:
S1: 1.5554 R1: 1.5646
S2: 1.5493 R2: 1.5679
S3: 1.5432 R3: 1.5708
Technical Overview:
The powerful rally which overcame the resistance at 1.5505 has forced us to change our count to a much more bullish one. The structure from the bottom of 1.4968 was overlapping, which first made us think of a series of waves one's and two's, but in the beginning of the last week we have chosen a less bullish count and looked for the rally from 1.4968 to 1.5427 as a leading diagonal as wave 1 and was a deeper correction in wave 2.Bbut we did not have any correction and the break above 1.5505 has forced us to switch back to the much more bullish count which is a series of waves one's and two's until the break above 1.5505 where we shifted gear to a series of waves three's and four's. That means we should be moving much higher and the speed will accelerate over the coming days.
The first minor target for maroon wave iii is at 1.5683, which should be followed by a minor correction to 1.5558 before pushing higher towards 1.5764, which is expected to mark the top of maroon wave v and green wave iii and after that we will keep building wave three's and four's until we have red wave v in place, likely near 1.5942 or even near 1.6090.
Trading Recommendation:
Buy EUR against NZD at 1.5565 with a stop at 1.5465 and hold on to your position as the rally extends.