Today's support and resistance levels:
R3: 1.6590
R2: 1.6560
R1: 1.6529
Current spot: 1.6520
S1: 1.6462
S2: 1.6428
S3: 1.6388
Technical overview:
Our triangle scenario panned out perfectly yesterday. We saw a minor correction to 1.6720 before the major decline occurred. We are currently in a correction from the low at 1.6429. This correction could move a little higher, but we are very close to the top. We are now looking for a break below 1.6490 to confirm the top and that the final decline towards our ideal target at 1.6388 is developing. However, as long as minor support at 1.6490 protects the downside, we could see this correction higher to 1.6560 before the next downside pressure really takes over.
Trading recommendation:
We sell EUR at 1.6720 and move our stop lower to 1.6643. Once support at 1.6462 breaks, we will move our stop lower to 1.6530. We will keep our take profit at 1.6425. As we are getting close to our ideal corrective target, it is time to look for signs that the correction from 1.7112 is coming to an end and a new major rally higher is developing. Therefore, we will place a EUR buy-order at 1.6395 and if filled we will place our stop at 1.6235.
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 July 5, 2013 . Thanks for your support on Elliott Wave analysis of EUR/NZD for July 5, 2013
