Today's Support and Resistance levels:
R3: 1.6406
R2: 1.6356
R1: 1.6300
Current Spot: 1.6297
S1: 1.6265
S2: 1.6230
S3: 1.6196
Technical summary:
We have seen an unexpected rally above important resistance at 1.6233, which tells us, that blue wave v became the fifth wave failure (no new low was seen), that also means that we have likely seen the low of the expanded flat correction, which has been developing since early August. In the short term we should meet resistance at 1.6300, but it will likely not hold for long and once broken we should see a continuation higher towards 1.6381 and 1.6406. In the longer term we are looking for a break above 1.6518 to confirm that wave C of the expanded flat correction is indeed over and that a new impulsive rally is developing. If we do not break above 1.6518, we could be developing a large ending diagonal, which could take many weeks to finish and that will keep the 1.5872 target alive.
Trading recommendation:
The stop and reverse at 1.6240 was, which means that you should now be long in EUR. Place your stop at 1.6160 and take profit at 1.6450.
The material has been provided by InstaForex Company - www.instaforex.com
For detail explanation and best discovery on market trends you may visit via Elliott wave analysis of EUR/NZD for October 23, 2013 . Thanks for your support on Elliott wave analysis of EUR/NZD for October 23, 2013
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