FX.co ★ Elliott wave analysis of EUR/NZD for December 9, 2013

Today's Support and Resistance levels:

R3: 1.6688

R2: 1.6601

R1: 1.6556

Current Spot: 1.6521

S1: 1.6470

S2: 1.6454

S3: 1.6443

Technical summary:

We did not expect an expanding flat correction to develop, but as long as important support at 1.6443 stays untouched, we will be looking for a break above 1.6556 and more importantly a break above 1.6750 confirming a new powerful rally higher. However, a break below 1.6443 will be a game changer and call for a new decline towards 1.5900 and likely even below.

In the short term we would like to see support in the 1.6500-1.6510 zone protecting the downside for a rally above 1.6556 indicating that we have seen the expanding flat correction end at 1.6470.

Trading recommendation:

To our suprise, our stop at 1.6520 was hit, but we will re-buy EUR here at 1.6521 with a stop + reverse at 1.6440.