FX.co ★ Elliott Wave analysis of EUR/NZD for September 2, 2013

Today's Support and Resistance levels:

R3: 1.7116

R2: 1.7071

R3: 1.7013

Current spot: 1.6954

S1: 1.6943

S2: 1.6912

S3: 1.6869

Technical summary:

Minor wave four of the c wave became a complex expanded flat correction, with a b-wave low at 1.6960 and a c-wave high at 1.7116. The big question whether wave five of c is in place at 1.6943 or we need a little more downside pressure towards 1.6912 or even 1.6869 in its extreme? Before the c-wave of the larger expanded flat wave ii correction is finally over, a break above minor resistance at 1.7013 will be the first indication, that wave has ended, while a break above 1.7116 is needed to confirm the final low and that wave iii higher towards 1.7239 and 1.7800 is developing. In the long term we are still looking for much higher levels in this cross.

Trading recommendation:

If you are long EUR from 1.7066, then stay long with a stop at 1.6800. If you are not long EUR yet, then buy close to 1.6912 or upon a break above 1.7116 (one order done cancels the other) and use the same stop at 1.6800.