Elliott wave analysis of EUR/NZD for August 11, 2014

Today's support and resistance levels:

R3: 1.5757

R2: 1.5845

R1: 1.5825

Current spot: 1.5818

S1: 1.5797

S2: 1.5787

S3: 1.5778

Technical Summary:

We have not really been able to gain any leadway the last couple of days and the reason is, that a wave iv triangle is unfolding. In the short term, we should see a decline close to support at 1.5778 to end the triangle and set-up the final rally higher to 1.5964 to end the first impulsive rally from 1.5398. Once this rally to 1.5964 is over, look for a new decline to 1.5740 and maybe even slightly below before the next impulsive rally should be seen.

Trading recommendation:

We are long in EUR from 1.5710 and will keep our stop at 1.5725. Place take profit at 1.5950. If you are not long in EUR yet, then buy EUR close to 1.5778 with the same stop at 1.5725 and stop profit at 1.5950.