FX.co ★ Elliott wave analysis of EUR/NZD for May 8, 2014

Today's Support and Resistance levels:

R3: 1.6277

R2: 1.6202 (critical level)

R1: 1.6112

Current spot: 1.6093

S1: 1.6027

S2: 1.5988

S3: 1.5869

Technical summary:

As long as short term important resistance at 1.6112 protects the upside we will be looking for a break below short-term support at 1.6027 as indication that the final decline towards the ideal target at 1.5653 is developing. That said, we have to be aware of the possible risk, that a fifth failure has been seen at 1.5869 (no new low below red wave iii at 1.5765). If we have seen a fifth failure we will see a break above 1.6112 and 1.6202 soon and should expect underlying strength in this market.

Trading recommendation:

We sold EUR again at 1.6075 and will move our stop + reverse to 1.6125. If you are not short in EUR yet, then sell here with the same stop + reverse at 1.6125 (low risk trade).