Today's Support and Resistance Levels:
R3: 1.6829
R2: 1.6760
R1: 1.6709
Current Spot: 1.6668
S1: 1.6598
S2: 1.6528
S3: 1.6493
Technical summary:
The unexpected break above important resistance at 1.6499 is a total game changer here. The bearish picture we have been describing over the last month has worked pretty well until yesterday's break above 1.6499 this break is not consistent with the bearish count. We have been back to the drawing board looking for the best alternate count. The best count is that a new impulsive rally began at the 1.5914 low in early November. Wave 1 went from 1.5914 to 1.6996 and wave 2 went from 1.6996 down to 1.6214, which marked a 70.7% correction of wave 1. If this count is correct the wave 3 higher is in its very early parts. The minimum target for wave 3 will be at 1.7344, but we would not be surprised to see wave 3 extend higher towards 1.8013 in the longer term.
In the hort term we will be looking for resistance near 1.6690 for a correction towards support in the 1.6462-1.6493 area for the next rally higher towards strong resistance near 1.6920.
Trading recommendation:
The stop at 1.6505 was hit for a loss. We will buy EUR at 1.6475 with a stop at 1.6325.
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 January 24, 2014 . Thanks for your support on Elliott Wave Analysis of EUR/NZD for January 24, 2014
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