FX.co ★ Elliott Wave Analysis of EUR/NZD for October 15, 2013

Today's Support and Resistance levels:

R3: 1.6274

R2: 1.6238

R1: 1.6198

Current Spot: 1.6161

S1: 1.6117

S2: 1.6071

S3: 1.6024

Technical summary:

The sideways consolidation was finally resolved with a break below the support at 1.6219. The break below important support at 1.6219 has triggered a S/H/S formation calling for a continuation lower towards important long term support near 1.5872. However, the break below 1.6219 has also forced us to change our Elliott Wave count, which now shows that wave iii ended at 1.6071 and wave iv ended at 1.6515 and we are currently in wave v lower towards the ideal corrective target near 1.5872, before we can expect the next major impulsive rally higher.

The short-term resistance at 1.6198 will ideally protect the upside for the next decline towards 1.6072 and 1.6028 as the next minor targets.

Trading recommendation:

Stay short from 1.6255 and move your stop lower to 1.6200. Place your take profit and buy EUR at 1.5890.