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19.03.2014 11:04 AM
Elliott wave analysis of EUR/NZD for March 19, 2014

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Today's Support and Resistance levels:

R3: 1.6315

R2: 1.6252

R1: 1.6195

Current spot: 1.6183

S1: 1.6158

S2: 1.6134

S3: 1.6086

Technical summary:

The complex correction that began at 1.7153 in early August last year countinues to frustrate the overall picture. At this point, it is unclear whether the second zig-zag rally has begun or the X-wave correction is still unfolding in the final ending diagonal. Until the overall picture becomes more clear this currency pair should not be traded. As long as resistance at 1.6473 and more importantly resistance at 1.6673 protects the upside the most likely outcome is that an ending diagonal is unfolding towards 1.5913 and maybe even slightly lower. Only a break above 1.6673 will indicate that a more bullish count is unfolding for a possible powerful rally higher.

Trading recommendation:

Stay neutral for now.

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