FX.co ★ Elliott wave analysis of EUR/NZD for January 25, 2016

Wave summary:

We are looking for a bottom in red wave ii above important support at 1.6370 for the next rally higher towards 1.7641 and higher to 1.8020.

The corrective pattern we expected red wave ii to form is an expanded flat correction and does that prove correct then a strong rally in red wave iii should be expected.

As long as minor resistance at 1.6706 is protecting the upside, we will be looking for a move closer to 1.6480 and maybe even closer to 1.6439 before red wave iii will be ready to take over for a strong rally higher to 1.7641 and above.

Only an unexpected breakout below 1.6370 will force a new count for the rally from 1.5784.

Trading recommendation:

We will buy EUR at 1.6480 with stop placed at 1.6365 or upon a breakout above 1.6706 with stop placed at 1.6480.