FX.co ★ Elliott Wave analysis of EUR/NZD for August 6, 2013

Today's Support and Resistance levels:

R3: 1.7047

R2: 1.6972

R1: 1.6942

Current Spot: 1.6929

S1: 1.6857

S2: 1.6813

S3: 1.6771

Technical summary:

The correction from the 1.7153 high has been deeper than expected, but as long as support at 1.6771 (the high of blue wave i) stays intact we will be looking for the next powerful rally higher soon. In fact we think that support at 1.6813 will protect the downside for a break above 1.6972 and, more importantly, a break above 1.7023 which confirms that a new impulsive rally above 1.7153 is developing. We are still looking at 1.7326 as the first target for this rally. That said we will have to be alert to a break below the top of blue wave i at 1.6771. If that happens, this rally cannot be impulsive and we should expect a new decline to 1.6225 in a flat correction.

Trading recommendation:

Our stop at 1.6895 was taken out for a nice profit. We are looking for a new EUR buying opportunity and will buy EUR at 1.6860 or upon a break above 1.6972 (one order done cancels the other). Stop will be placed at 1.6765.