Elliott Wave analysis of EUR/NZD for August 20, 2013

Today's Support and Resistance levels:

R3: 1.6798

R2: 1.6759

R1: 1.6730

Current spot: 1.6701

S1: 1.6666

S2: 1.6629

S3: 1.6572

Technical summary:

The decline only made to 1.6325 before a very powerful rally took over and with the break above important resistance at 1.6570 we must consider the major X- wave, that began from 171.13, as finished. Therefor we are looking for a new powerful zig-zag combination higher towards 1.7643 and more likely towards 1.8463 longer term. Short term we are looking for support at 1.6666 to protect the downside for the move higher towards 1.6798 and maybe even higher towards 1.6870.

Trading recommendation:

The stop at 1.6575 was hit for a nice profit. Buy EUR at 1.6675 with a stop at 1.6550.