FX.co ★ Elliott wave analysis of EUR/NZD for October 28, 2013

Today's Support and Resistance levels:

R3: 1.6740

R2: 1.6684

R1: 1.6654

Current Spot: 1.6623

S1: 1.6559

S2: 1.6498

S3: 1.6444

Technical summary:

There was no time for a correction Friday, as we continued directly higher to the next resistance at 1.6685 (we have seen 1.6684 as the high for now). However, we still think that we should soon see wave ii unfold, but to confirm that wave ii is unfolding, we need a break below 1.6559 that would call for a continuation lower towards 1.6498 and 1.6444, before the ideal wave ii target near 1.6325. That said, we have to be aware that as long as support at 1.6559 protects the downside, we could see a continuation directly higher towards 1.6740 if wave i extends even more.

Trading recommendation:

Stay short from 1.6595 with your stop at 1.6695 and take profit at 1.6420. If you are not short in EUR yet, then sell upon a break below 1.6559 with the same stop and take profit levels.