FX.co ★ Elliott Wave Analysis of EUR/NZD for January 22, 2014

Today's Support and Resistance levels:

R3: 1.6334

R2: 1.6307

R1: 1.6284

Current spot: 1.6263

S1: 1.6238

S2: 1.6190

S3: 1.6129

Technical summary:

The correction we expected to end at 1.6310 became slightly more complex and ended at 1.6334. However, in the short term we are looking for minor resistance at 1.6284 to protect the upside for the next decline towards 1.6129 and perhaps even lower towards 1.6049 to end wave (v) and iii. Once wave iii is in place look for a complex correction in wave iv towards 1.6315 and likely even higher to 1.6431 before the last impulsive decline towards the ideal target at 1.5793.

Trading recommendation:

Stay short from 1.6405 and lower your stop to 1.6340 and keep take profit at 1.6150. If you are not short in EUR yet, then sell near 1.6285 or upon a break below 1.6238 with the same stop and take profit levels.