FX.co ★ Elliott Wave analysis of EUR/NZD for September 5, 2013

Today's Support and Resistance levels:

R3: 1.6847

R2: 1.6799

R1: 1.6750

Current Spot: 1.6697

S1: 1.6674

S2: 1.6625

S3: 1.6572

Technical summary:

As minor, but important, resistance at 1.6933 had protected the upside from a break below support at 1.6801 we had to change our short-term count slightly (see the 15-minute chart below). With the decline to 1.6625 (deeper than expected) we have seen a 61.8% correction of wave i and wave c of the expanded flat correction has become 3 times longer than wave a. In the short-term, we will need a break above 1.6750 as the first indication, that wave ii could be over, but it will take a break above 1.6933 to confirm that wave ii is indeed over and wave iii is developing for a rally higher towards at least 1.8037 and possibly higher. However, as long as minor resistance at 1.6750 protects the upside we could see a slightly deeper correction in wave ii, but we are very close to a bottom now.

Trading recommendation:

Our stop at 1.6801 was hit. Buy EUR at 1.6590 or upon a break above 1.6750. Place stop at 1.6320 expecting to be able to raise your stop quickly.