FX.co ★ Elliott wave analysis of EUR/NZD for May 31, 2018

Wave ii/ likely saw a low with the test of 1.6624. We still need to see a break above the resistance-line near 1.6734 and more importantly a break above minor resistance at 1.6764 to add confidence in our view that a low likely is in place. As long as minor resistance at 1.6764 is able to cap the upside, we could still see another attack towards the downside, but the downside potential seems very limited from here.

A break above minor resistance at 1.6764 will target the more important resistance at 1.7062 and above here will confirm that wave iii/ to above 1.7300 is developing.

R3: 1.6903

R2: 1.6829

R1: 1.6764

Pivot: 1.6705

S1: 1.6683

S2: 1.6656

S3: 1.6624

Trading recommendation:

We will buy a break above minor resistance at 1.6764 and if done place our stop at 1.6620.