Elliott wave analysis of EUR/NZD for January 26, 2016 Market Analysis Review

Wave summary:

EUR/NZD failed to move lower towards 1.6480. Instead of it, the pair broke above resistance at 1.6706 indicating that the bottom was already in place for the expanded flat wave ii. After an expanded flat wave two, an extended rally should always be expected. So, the bottom is about to break above minor resistance at 1.7010 and more importantly above 1.7273, strong and almost vertical rally towards at least 1.7641 and more likely even higher to 1.8020 should be expected.

In the short term, we expect minor support at 1.6706 to protect the downside for a breakout above 1.7010 for another impulsive move higher to 1.7641.

Trading recommendation:

We bought EUR at 1.6706 and placed our stop at 1.6505. If you are not long EUR yet, then buy near 1.6706 and use the same stop at 1.6505.

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

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