Elliott Wave analysis of EUR/NZD for October 24, 2013
October 24, 2013 3:30 pm
Today’s Support and Resistance levels:
R3: 1.6740
R2: 1.6685
R1: 1.6608 – Likely target for wave i of the new impulsive uptrend
Current Spot: 1.6578
S1: 1.6518
S2: 1.6475
S3: 1.6397
Technical summary:
With a clear break above 1.6518 all doubts about this rally have been removed. A new impulsive rally is clearly developing. Looking at the structure from 1.6057 it is now in five waves, which indicates that wave i of the new impulsive rally is near its top. We are looking for a top in the 1.6608 – 1.6618 area from where wave ii towards at least 1.6478 but it is more likely we will see a deeper wave ii correction towards 1.6397 from where we could see wave iii higher takes over. That said we have to remember, that we are looking for a wave ii correction and wave ii corrections are allowed to correct 100% of wave i.
Only a clear break above 1.6618 will call for a continuation higher towards 1.6685 and maybe even 1.6740, but that is not our preferred count at this point.
Trading recommendation:
The take profit at 1.6450 was hit for a nice profit yesterday. We will sell EUR at 1.6595 with at stop at 1.6695 and place a take profit at 1.6420.
The material has been provided by InstaForex Company – www.instaforex.com
Today’s Support and Resistance levels:
R3: 1.6740
R2: 1.6685
R1: 1.6608 – Likely target for wave i of the new impulsive uptrend
Current Spot: 1.6578
S1: 1.6518
S2: 1.6475
S3: 1.6397
Technical summary:
With a clear break above 1.6518 all doubts about this rally have been removed. A new impulsive rally is clearly developing. Looking at the structure from 1.6057 it is now in five waves, which indicates that wave i of the new impulsive rally is near its top. We are looking for a top in the 1.6608 – 1.6618 area from where wave ii towards at least 1.6478 but it is more likely we will see a deeper wave ii correction towards 1.6397 from where we could see wave iii higher takes over. That said we have to remember, that we are looking for a wave ii correction and wave ii corrections are allowed to correct 100% of wave i.
Only a clear break above 1.6618 will call for a continuation higher towards 1.6685 and maybe even 1.6740, but that is not our preferred count at this point.
Trading recommendation:
The take profit at 1.6450 was hit for a nice profit yesterday. We will sell EUR at 1.6595 with at stop at 1.6695 and place a take profit at 1.6420.
The material has been provided by InstaForex Company – www.instaforex.com
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