FX.co ★ Elliott wave analysis of EUR/NZD for October 25, 2013

Today's Support and Resistance levels:

R3: 1.6740

R2: 1.6685

R1: 1.6618

Current Spot: 1.6591

S1: 1.6544

S2: 1.6498

S2: 1.6455

Technical summary:

We have reached our target area between 1.6608 and 1.6618 (as the high we have seen at 1.6615). We are now looking for a break below 1.6544 to indicate that wave i is done and wave ii is developing for a decline towards at least 1.6498 and more likely a deeper correction towards 1.6397, which a break below 1.6498 will confirm.

However, as long as minor support at 1.6544 protects the downside we could see a continuation higher, but we have seen a clear short-term loss of momentum, which indicates, that we are close to a top for wave i.

Trading recommendation:

Your should be short at 1.6595 with a stop at 1.6695 and take profit at 1.6420. If you are not short in EUR, you can sell near 1.6618 or upon a break below 1.6544 with the same stop at 1.6695.