Elliott wave analysis of EUR/NZD for September 15, 2014

Today’s support and resistance levels:

R3: 1.5949

R2: 1.5929

R1: 1.5906

Current spot: 1.5880

S1: 1.5862

S2: 1.5841

S3: 1.5818

Technical summary;

The strong rally of the 1.5526 low has broken clearly above the resistance-line from early February and more importantly above the former top at 1.5898 indicating much more upside price-action will be seen. However, short term we ended wave i of 3 at 1.5949 and should be looking for a correction towards the bottom of wave four of i at 1.5766 before wave iii of 3 is ready to take over for a strong rally higher to 1.6451. On the way higher towards the possible wave iii target, we will meet strong resistance at 1.6203, but it should not be able to protect the upside for long.

Trading recommendation:

We are long in EUR from 1.5550 and will move our stop higher to 1.5750. If you are not long in EUR yet, then buy EUR near 1.5766 with the same stop at 1.5750.

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