FX.co ★ Elliott wave analysis of EUR/NZD for June 4, 2014

Today's Support and Resistance levels:

R3: 1.6285

R2: 1.6235

R1: 1.6200

Current spot: 1.6166

S1: 1.6120

S2: 1.6105

S3: 1.6075

Technical summary:

We have finally seen the break above resistance at 1.6179, which confirms that an important long-term bottom was found at 1.5744. We will now be looking for a break above the base-channel resistance line near 1.6215 as that will accelerate prices higher in wave three towards the next major target at 1.6285 and higher.

In the short term support at 1.6120 will ideally protect the downside for the break above the base-chanel resistance line, but if support at 1.6120 is broken, it will only delay the next rally higher.

Trading recommendation:

Stay short in EUR from 1.5858 and move stop higher to 1.6075. If you are not long in EUR yet, then buy EUR near 1.6120 or upon a break above 1.6235 with the same stop at 1.6075.