FX.co ★ Elliott wave analysis of EUR/NZD for November 18 - 2014

Today's support and resistance levels:

R3: 1.5823

R2: 1.5792

R1: 1.5766

Current spot: 1.5731

S1: 1.5723

S2: 1.5701

S3: 1.5680

Technical summary:

Wave 4 dipped a little lower than the ideal 1.5705 target, with the low coming in at 1.5680. We will now be looking for a rally past minor resistance at 1.5792 and more importantly a break above resistance at 1.5877 confirming the wave 4 bottom and that wave 5 higher to 1.6446 and 1.6800 is developing to end the expanding diagonal. Short term, only a break below 1.5680 will invalidate the expected rally higher and call for a move closer to 1.5640.

Trading recommendation:

We bought EUR at 1.5720 and will move our stop higher to 1.5620. If you are not long in EUR yet, then buy near 1.5720 with the same stop at 1.5620.