FX.co ★ Elliott wave analysis of EUR/NZD for May 24, 2018

Our preferred long-term outlook calls for a continuation higher towards 1.9844. Here we see both the 50% corrective target of the decline from 2.5773 to 1.3880 and the measured target of the huge Diamond bottom that was triggered in February 2017.

Zooming in on the price-action, we have been tracking an expanded flat correction since the peak at 1.7257. We expected this expanded flat to have completed yesterday with the test of 1.6890, but with a new low seen at 1.6873 it's still developing. However, the potential downside should be limited to 1.6770 as the wave c/ of ii/ could extend a bit further.

Resistance is seen at 1.6937 and, more importantly, at 1.6988. A break above the later one is the first good indication, that the wave ii/ has completed and the wave iii/ is developing.

R3: 1.7022

R2: 1.6988

R1: 1.6937

Pivot: 1.6882

S1: 1.6873

S2: 1.6846

S3: 1.6770.

Trading recommendation:

Our stop at 1.6950 was hit for a small profit of 20 pips. We are looking for a new EUR-buying opportunity at 1.6790 or upon a break above 1.6950.