FX.co ★ Elliott wave analysis of EUR/NZD for August 14 - 2015

Technical summary:

The break above 170.77 indicates that an expanded flat correction is unfolding. This means a continuation higher to 1.7198 as an ideal target with an outside chance for a rally higher to 1.7273 if the b-wave extends before downside in wave c.

The short-term support is found at 1.6966 which ideally should protect the downside for the rally towards 1.7198 in wave b before lower in wave c. Only a direct break below 1.6893 will indicate that wave b peaked early and wave c is already unfolding.

Trading recommendation:

We were not looking for an extended flat, so our stop at 1.7078 was hit. We will wait to sell EUR at 1.7185 with stop placed at 1.7285.