FX.co ★ Elliott wave analysis of EUR/NZD for October 18, 2016

Wave summary:

We have just seen the expected test of the 61.8% corrective target and we will now be looking for a break above minor resistance at 1.5438 as the first good indication that a corrective low is in place, while a break above resistance at 1.5549 is needed to confirm that the corrective low in wave (ii) is in place and wave (iii) towards 1.6396 is developing. As long as minor resistance keeps at 1.5438, we need to stay flexible about the downside, as second waves are allowed to correct 100% of the first wave, which in this case means a corrective decline in wave (ii) to 1.4989.

Trading recommendation:

We have bought EUR at 1.5285 and will place our stop at 1.4985. If you are not long EUR yet, then buy near 1.5245 or upon a break above 1.5438 and use the same stop at 1.4985.