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09.07.2014 10:36 AM
Elliott wave analysis of EUR/NZD for July 9, 2014

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Today's support and resistance levels:

R3: 1.5528

R2: 1.5494

R1: 1.5475

Current spot: 1.5462

S1: 1.5437

S2: 1.5389

S3: 1.5350

Technical summary:

The unexpected break below 1.5478 has once again revived the downtrend from 1.7274. As we have broken almost all possible support points, now it seems fit to expect a full 100% retracement of the rally from 1.4966 to 1.7274 in a flat correction. It means the last part of the decline clearly lacks momentum. Now, a bottom could be found any time to end the X-wave, which has been unfolding since the 1.7274 high. This has been a very difficulte wave to track and has caused a lot of burned fingers.

Trading recommendation:

Our stop at 1.5470 was hit and we still stay neutral for now.

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