FX.co ★ Elliott wave analysis of EUR/NZD for February 19, 2018

Wave summary:

EUR/NZD took a long way and broke through support at 1.6885 for a decline closer to 1.6775 (the low has been seen at 1.6771. We could see EUR/NZD move slightly lower to 1.6740 before completing wave ii and setting the stage for wave iii higher to 1.7470 on the way higher to 1.7777.

Only a direct break above minor resistance at 1.6865 will hint that wave ii already has completed and wave iii higher is taking over.

R3: 1.6978

R2: 1.6860

R1: 1.6825

Pivot: 1.6770

S1: 1.6740

S2: 1.6681

S3: 1.6630

Trading recommendation:

We bought EUR at 1.6790 and will place our stop at 1.6690.