Elliott wave analysis of EUR/NZD for January 4, 2016 Market Analysis Review

Wave summary:

The wave ii tooled us all the way down to 1.5794 just above the start of the wave i at 1.5784. Second waves are allowed to correct 100% of the first wave, but they must never ever break below the start point of the first wave. In this case, the wave ii stopped just 10 pips before the starting point of the wave i and thereby sustained the count we have been working since early December.

In the short term, we will be looking for support at 1.5997 and a break above 1.6220 as the next important resistance to break is on the way higher to at least 1.6935.

Trading recommendation:

We bought EUR at 1.5810 and will move our stop higher to 1.5925. If you are not EUR long already, then buy near 1.5997 and use the same stop at 1.5925.

The material has been provided by InstaForex Company - www.instaforex.com

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