EUR/NZD has followed the expected path laid out to perfection. We expect that resistance near 1.6859 will cap the upside for a break below minor support 1.6786 confirming that wave iv/ has completed and wave v/ lower towards 1.6613 is developing.

This should complete wave ii and set the stage for a larger rally in wave iii to above 1.7162.

Only an unexpected break below important support at 1.6518 changes the count and indicates, that a larger correction is unfolding from 1.7493. This larger correction, if it's seen, targets 1.6220. We do not favor this alternate scenario, but it can not be excluded yet.

R3: 1.6919

R2: 1.6886

R1: 1.6859

Pivot: 1.6828

S1: 1.6800

S2: 1.6765

S3: 1.6734

Trading recommendation:

We sold EUR again at 1.6845 and we placed our stop at 1.6915.