FX.co ★ Elliott wave analysis of EUR/NZD for August 6, 2014

Today's support and resistance levels:

S3: 1.5900

S2: 1.5867

S3: 1.5855

Current spot: 1.5833

S1: 1.5800

S2: 1.5788

S3: 1.5766

Technical summary:

We saw a dip just below our expected corrective target at 1.5705 (the low came in at 1.5699) before the next impulsive upswing. Look for support near 1.5800 for the next rally to 1.5900 and higher. In a longer term, we are still looking for much higher levels towards 1.6200 as the first major resistance, but it should only be able to protect the upside for a correction, which could decline to 1.5800, but does not need to do so.

Trading recommendation:

We bought EUR at 1.5710 and will move our stop up to 1.5695. If you are not long in EUR yet, then buy near 1.5800 with the same stop at 1.5695.