FX.co ★ Elliott Wave Analysis of EUR/NZD for February 7, 2014

Today's Support and Resistance levels:

R3: 1.6605

R2: 1.6549

R1: 1.6510

Current spot: 1.6495

S1: 1.6475

S2: 1.6417

S3: 1.6347

Technical summary:

With a slightly new low at 1.6347 we have had to move wave E of the major X-wave triangle, but overall we are still looking for a major rally high soon. In the hort term we expect support at 1.6475 to protect the downside for a break above 1.6549 that confirms a continuations higher towards 166.05 and 1.6779. A break above the later confirms a thrust out of the triangle for a rally towards at least 1.8543. We do hope the visibility will become better soon, but major corrections as the one we are looking at, tend to have long periods where the visibility and the probability is low.

In the short term a break below 1.6475 will delay the upside for a move closer to 1.6454 before higher again. At no point can a break below 1.6347 be allowed as that will invalidate the above count.

Trading recommendation:

Stay long in EUR from 1.6466 and keep your stop at 1.6345. If you are not long in EUR yet, then buy a break above 1.6549 with a stop at 1.6470.