FX.co ★ Elliott Wave analysis of EUR/NZD for January 16, 2014

Today's Support and Resistance levels:

R3: 1.6435

R2: 1.6405

R1: 1.6385

Current Spot: 1.6354

S1: 1.6339

S2: 1.6298

S3: 1.6262

Technical summary:

The wave (iv) correction we where looking for is unfolding nicely. We expect support at 1.6340 to protect the downside for the last rally higher towards the 1.6405 -1.6415 area, before wave (v) lower will take over for a decline towards at least 1.6129 and maybe even lower towards 1.5962. Once wave (v) and iii is over expect a new correction, that will stay below 1.6405 in wave iv and then a final decline lower to 1.5793 to end the major correction that began at 1.7274 in late August 2013.

Trading recommendation:

We will sell EUR at 1.6405 or upon a break below 1.6297 (one order done cancels the other). Stop will be placed at 1.6580.В