05.02.201411:15 Forex Analysis & Reviews: Elliott Wave Analysis of EUR/NZD for February 5, 2014

Long-term review

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Today's Support and Resistance levels:

R3: 1.6613

R2: 1.6547

R1: 1.6501

Current Spot: 1.6466

S1: 1.6426

S2: 1.6408

S3: 1.6395

Technical summary:

With the break below support at 1.6469 (the top of wave i), we have been forced to adopt the alternate triangle count as our preferred count. It shows a major X-wave triangle, which ultimately will call for a break out of the triangle towards the upside. In the short term, we think that the wave E would end at 1.6352 and would look for a break above 1.6500 as the first indication, while a break above resistance at 1.6603 would confirm the bottom for a new rally towards 1.6787 and more importantly a break above resistance at 1.6996.

As long as minor resistance at 1.6500 protects the upside, it opens the possibility for a slightly deeper correction towards 1.6408 and maybe even 1.6395 before higher again.

Trading recommendation:

Our stop at 1.6554 was hit for a nice little profit. We will buy EUR here at 1.6466 with a stop at 1.6210, but we expect to be able to raise the stop soon.

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