Elliott Wave Analysis of EUR/NZD for February 3, 2014

Today’s Support and Resistance levels:

R3: 1.6748

R2: 1.6713

R1: 1.6670

Current spot: 1.6623

S1: 1.6560

S2: 1.6493

S3: 1.6419

Technical summary:

Black wave iii ended slightly earlier than expected 1.6792 (the high of wave iii came in at 1.6748). We are now in black wave iv, which ideally will meet support at 1.6560 for the next rally higher towards 1.6910 to end black wave v and wave i of 3, which is expected to move much higher in the longer term. The alternative count (not shown on the chart) calls for a possible triangle developing, but this count still calls for a move towards 1.6900 before a new decline sets in.

Trading recommendation:

Stay long in EUR from 1.6495. As the take profit target has not been hit, keep your stop at 1.6554 and place take profit at 1.6875. If you are not long in EUR yet, the buy EUR near 1.6560 with a very close stop at 1.6554 and with the same take profit target at 1.6875.

The material has been provided by InstaForex Company – www.instaforex.com