09.10.201413:24 Forex Analysis & Reviews: Elliott wave analysis of EUR/NZD for October 9 - 2014

Long-term review

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Today's support and resistance levels:

R3: 1.6132

R2: 1.6107

R1: 1.6086

Current spot: 1.6045

S1: 1.6032

S2: 1.6000

S3: 1.5977

Technical summary:

Our call for another decline to support at 1.5978 has proved correct. The question now is whether support at 1.5978 will be able to protect the downside for a new rally or this support will be broken for a deeper correction towards 1.5800? We think support at 1.5978 will be able to protect the downside, but to confirm this outcome, we should see a rally from 1.5978 to back above 1.6132 confirming a new test of 1.6269 on the way higher. However, if support at 1.5978 is broken and more importantly support at 1.5949 is broken then we should be looking for a move closer to 1.5800 before the next impulsive rally higher. However, if support at 1.5949 is broken, then the rally to 1.6446 can not be wave iii, but will have to be a wave i of one lessor degree.

Trading recommendation:

We will re-buy EUR at 1.5985 with a stop at 1.5940.

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