FX.co ★ Elliott wave analysis of EUR/NZD for August 30, 2013

Today's Support and Resistance levels:

R3: 1.7144

R2: 1.7095

R1: 1.7066

Current Spot: 1.7033

S1: 1.7005

S2: 1.6968

S3: 1.7005

Technical summary:

With a break below 1.6996 we knew that wave ii had not finished yet and that it was expanded flat correction (the top of wave b ended higher than the top of wave a and the bottom of wave c was lower than the low of wave a). An impulsive rally that follows expanded flat correction will be an extended wave, so once wave ii is finished we should expect a very powerful ascending wave iii. In the short term, we are looking for a decline towards 1.6989 and, maybe, even lower - towards 1.6912 as long as resistance at 1.7066 and more importantly resistance at 1.7095 protects the upside. However, a break above 1.7095 indicates that wave c of the expanded flat correction is in place and wave iii has taken over for a rally, at least, to 1.7166 and more likely higher towards 1.7274.

Trading recommendation:

Our stop at 1.6985 was hit. Look for a new EUR-buying opportunity near 1.6912 or after a break above 1.7066 (one done order cancels another).