23.08.201308:22 Forex Analysis & Reviews: Elliott wave analysis of EUR/NZD for August 23, 2013

Today's Support and Resistance levels:

R3: 1.7153 (the top from August 5)

R2: 1.7100 (the ideal target for wave i)

R1: 1.7080 (current high for wave i)

Current Spot: 170.37

S1: 1.6998 (break below here will be first indication of a finish wave i)

S2: 1.6936

S3: 1.6855

Technical summary:

We have almost reached the ideal target for this wave i and we should soon see a wave ii correction develop. As long as support at 1.6998 protects the downside we could still see one last spike higher towards the ideal target at 1.7100, but from there or upon a break below 1.6998 we should see a corrective decline towards the 38.2% corrective target, which comes in at 1.6804. This correction could of cause be deeper, but looking at the speed wave i had and the impatient of the market we should only expect the minimum corrective target reached. But for now let's concentrate one picking the top of wave i near 1.7100.

Trading recommendation:

Sell near 1.7100 with a stop at 1.7200 or upon a break below 1.6998 (sell at 1.6990) with a stop just above the top of wave i with your target set at 1.6804 and perhaps lower.