Elliott wave analysis of EUR/NZD for January 19, 2017

Wave summary:

With a low seen at 1.4789 (just above the 1.4778 target), the correction from 1.5235 is likely to complete and a new impulsive rally to 1.5282 and 1.5837 is now building. The break above minor resistance at 1.4886 was the first good indication that the corrective low has been seen, while a break above resistance at 1.5003 will confirm that the correction from 1.5235 has completed and wave iii/ has taken over for a rally towards 1.5837.

R3: 1.5045

R2: 1.5003

R1: 1.4930

Pivot: 1.4896

S1: 1.4840

S2: 1.4789

S1: 1.4750

Trading recommendation:

We bought EUR at 1.4886 with stop placed at 1.4650. If you are not long EUR yet, then buy a break above 1.4927 and use the same stop at 1.4650.