FX.co ★ Elliott wave analysis of EUR/NZD for March 26, 2014

Today's Support and Resistance levels:

R3: 1.6167

R2: 1.6134

R1: 1.6099

Current spot: 1.6056

S1: 1.6049

S2: 1.6018

S3: 1.5983

Technical summary:

With the unexpected break below support at 1.6086, the wave iv correction is turning into an expanded flat correction. In the short term, look for support in the 1.6038 - 1.6049 area for a break above 1.6075 and more importantly a break above resistance at 1.6134 that confirms wave c higher towards 1.6400 is unfolding. Only an unexpected break below 1.6038 will prolong wave b towards 1.6018 and maybe even deeper to 1.5983 before the final impulsive rally in wave c of iv towards 1.6400.

Trading recommendation:

The stop at 1.6100 was hit for a small loss. Buy EUR again here at 1.6056 with a stop at 1.5970 and place your take profit at 1.6375.