FX.co ★ Elliott wave analysis of EUR/NZD for August 14, 2014

Today's support and resistance levels:

R3: 1.5814

R2: 1.5796

R1: 1.5778

Current spot: 1.5768

S1: 1.5758

S2. 1.5742

S3: 1.5730

Technical summary:

Wave 2 is unfolding as expected. We are looking for a decline to 1.5707 as the first target. At 1.5707, we will not find the 38.2% corrective target of the rally from 1.5398 to 1.5898, but also wave iv to some degree, which normally represents strong support. Therefore, we should expect at least a bounce from 1.5707. An unexpected clear break below 1.5707 will call for a continuation lower to 1.5598.

Trading recommendation:

We will buy EUR at 1.5715 with a stop at 1.5660.