FX.co ★ Elliott Wave analysis of EUR/NZD for July 1, 2013

Today's support and resistance levels:

R3: 1.6887

R2: 1.6841

R1: 1.6794

Current Spot: 1.6752

S1: 1.6690

S2: 1.6650

S3: 1.6600

Technical overview:

The break above 1.6801 and more importantly, the break above 1.6847 has forced us to change our count slightly. Overall, we are still looking for a deeper correction towards 1.6388, but we will have to stay flexible, as corrections very easily can change shape, from one day to the next. With the break above 1.6847 that is exactly what we have seen. The best way to count the decline from 1.7111 down to 1.6578 is as wave w and we are currently developing an x wave, which ideally should rally higher to 1.6908, before the next decline towards 1.6388 is seen. However, a direct break below support at 1.6690 will indicate that the X-wave did finish early and the next decline lower has already begun.

Trading recommendation:

Our stop at 1.6850 was taken out for a minor loss. We will be looking for a new EUR-selling opportunity at 1.6895. We will place our stop at 1.7010 if done.