FX.co ★ EUR/NZD Elliott Wave analysis for June 28, 2013

Today's support and resistance levels:

R3: 1.6848 (bottom of wave i - Should not be broken)

R2: 1.6801

R1: 1.6754

Current Spot: 1.6740

S1: 1.6705

S2: 1.6665

S3: 1.6600

Technical overview:

We have seen the expected minor rally higher. It went a little higher than our expected 1.6789 (the top has been at 1.6801), but that does not damage our larger count. We are now looking for a break below 1.6705 and, more importantly, a break below 1.6665 to confirm the next decline towards 1.6600 and 1.6541. Once we reach support at 1.6541 we should expect a new correction higher, but this correction should stay well below 1.6801. For now, we are focused on the downside and a break below 1.6705 as the first indication, that a decline to 1.6541 is in progress.

Trading recommendation:

We sold EUR at 1.6780 and will keep our stop at 1.6850 for now. We will take profit on our short position at 1.6550. If you do not have short EUR positions already, then sell at a break below 1.6705 with the same stop at 1.6850.