FX.co ★ Elliott wave analysis of EUR/NZD for February 7, 2017

Wave summary:

EUR/NZD is pushing the limits for wave v at 1.4362. Within an ending diagonal wave iii cannot be the smallest. It means that wave v must hold at or above 1.4362 or wave iii will be the smallest of the impulsive waves which is not allowed under the EWP and will invalidate the ending diagonal as the correct pattern and force a recount of the decline since June 2016.

The first indication that wave v has bottomed will be a break above minor resistance at 1.4834, while a break above resistance at 1.4953 will be a strong indication that the ending diagonal finally is complete. However, only a break above resistance at 1.5276 will confirm the completion of this deep and complex wave 2 correction.

R3: 1.4789

R2: 1.4732

R1: 1.4625

Pivot: 1.4550

S1: 1.4486

S2: 1.4449

S3: 1.4362 - The limit for wave v

Trading recommendation:

We will buy EUR at 1.4450 or upon a break above 1.4867.