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11.06.2014 11:26 AM
Elliott wave analysis of EUR/NZD for June 11, 2014

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Today's Support and Resistance Levels:

R3: 1.5924

R2: 1.5892

R1: 1.5848

Current Spot: 1.5830

S1: 1.5796

S2: 1.5743

S3: 1.5700

Technical summary:

The decline from 1.6203 has been much stronger than anticipated. If however our long-term bullish count remains, then at no point a break below 1.5743 will take place. It is allowed for the wave second to correct 100% of the first wave, but the origin of wave one (here 1.5743) cannot be broken by a single pip as that would trigger a recount. This leaves us with limited downside potential from here, but we need a break above resistance at 1.5848 and more importantly a break above resistance at 1.5974 to confirm the bottom for a new rally towards 1.6203 and higher towards 1.6285.

Trading recommendation:

We are long EUR from 1.5925 with stop placed at 1.5740. If you are not long EUR yet, then buy upon a break above 1.5848 with the same stop at 1.5740.

Summary
Urgency
Analytic
Torben Melsted
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