FX.co ★ Elliott wave analysis of EUR/NZD for February 20, 2014

Today's Support and Resistance levels:

R3: 1.6748

R2: 1.6713

R1: 1.6670

Current spot: 1.6629

S1: 1.6618

S2: 1.6574

S3: 1.6523

Technical summary:

We now have a five wave rally from the 1.6252 low and a correction can evolve any time now. That said, we do expect the fifth wave to reach 1.6713, before the correction sets in. Once this wave 1 is over, we should see a correction lower towards at least 1.6478. A break below support at 1.6574 confirms that wave 1 is in place and the wave 2 correction towards at least 1.6478 and possibly even lower towards 1.6413 is developing.

Trading recommendation:

Stay long in EUR from 1.6260 and raise your stop to 1.6570 and take profit at 1.6705.