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07.08.2013 09:03 AM
Elliott wave analysis of EUR/NZD for August 7, 2013

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Today's Support and Resistance levels:

R3: 1.6987

R2: 1.6946

R1: 1.6883

Current Spot: 1.6848

S1: 1.6799

S2: 1.6771 (top of blue wave i - A break invalidates the bullish count)

S3: 1.6720

Technical summary:

We are still looking for important support at 1.6771 (top of blue wave i) to protect the downside movement from a break above 1.6883 and a more important break above 1.6946, which will confirm that blue wave iv is over and that blue wave v is developing higher for a rally at least towards 1.7166. In a longer term we are looking for a test of 1.7326 as the target of wave iii. However, if important support at 1.6771 is taken out, that would invalidate our bullish count and call for a new decline towards 1.6225 in a flat correction.

Trading recommendation:

Stay long on EUR from 1.6860 with stop at 1.6765. Otherwise, buy above 1.6883 with stop at 1.6765.

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