FX.co ★ Elliott Wave Analysis of EUR/NZD for January 23, 2014

Today's Support and Resistance levels:

R3: 1.6499

R2: 1.6469

R1: 1.6438

Current spot: 1.6428

S1: 1.6392

S2: 1.6358

S3: 1.6320

Technical summary:

The corrective cycle from 1.6238 has become more complex than firstly expected. We do however think that a top is close and the next impulsive decline ready to take over again. However, to confirm that the next impulsive decline is developing, we need a break below support at 1.6320. As long as support at 1.6320 holds firm and protects the downside, we could see a little more upside towards 1.6473, but at no point a break above resistance at 1.6499 can be allowed.

A break below 1.6320 will call for a decline towards 1.6237 on the way lower towards 1.6127.

Trading recommendation:

We booked a nice profit at 1.6340. We will sell EUR again here at 1.6428 with a stop at 1.6505.