Elliott wave analysis of EUR/NZD for October 29, 2013

Today’s Support and Resistance levels:

R3: 1.6800

R2: 1.6736

R1: 1.6684

Current Spot: 1.6662

S1: 1.6617

S2: 1.6559

S3: 1.6498

Technical summary:

Important short-term support at 1.6559 held firmly yesterday and protected the downside for a new rally towards the top at 1.6684. We are still looking for a break below 1.6559 to confirm a deeper wave ii correction towards 1.6498 and likely lower towards 1.6444, but we have to accept, that as long as support at 1.6559 protects the downside the uptrend is intact and a possibility of a break above resistance at 1.6684 is a possibility, which will open for a continuation higher towards 1.6736. That said, we do prefer, that resistance at 1.6684 holds firm for the break below 1.6559.

Trading recommendation:

Stay short from 1.6595 with your stop placed at 1.6695. If you are not short yet, wait to sell EUR upon a break below 1.6559 with the same stop at 1.6695.

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