FX.co ★ Elliott Wave analysis of EUR/NZD for August 21, 2013

Today's Support and Resistance levels:

R3: 1.7100

R2: 1.7050

R1: 1.7006

Current spot: 1.6975

S1: 1.6925

S2: 1.6856

S3: 1.6835

Technical summary:

We should be close to the top of wave i of the new impulsive rally which began at 1.6325. We expect the top to be set close to 1.7100 from where we should expect a correction towards at least 1.6915 and, more likely, down to 1.6804, where wave ii will have corrected 38.2% of wave i. If wave ii ends at 1.6804 it will still be a sub-normal correction for a wave ii and indicate underlying strength in this cross.

In the long term we are looking for much higher levels.

Trading recommendation:

We are looking for an EUR-buying opportunity. Buy EUR near 1.6804 (buy at 1.6810).