Today’s Support and Resistance levels:
R3: 1.6217
R2: 1.6196
R1: 1.6175
Current spot: 1.6120
S1: 1.6097
S2: 1.6057
S3: 1.6000
Technical summary:
It is still an open question whether we only have seen a correction from 1.5766 or we are at the beginning of an impulsive rally of this low. The big question is whether the overlapping structure from 1.5837 is a leading diagonal as blue wave i or it is an ending diagonal as red wave c. The complication from this two outcomes will be completely different. If it is an ending diagonal, we will see a new low below 1.5766 likely closer to 1.5566 to end the entire decline from 1.6787. However, if it is a leading diagonal, we should only see a move towards 1.6004 before the next impulsive rally higher sets in. This next rally will break above strong resistance at 1.6325 without much trouble for a continuation higher towards 1.6731. We prefer the bearish count slightly above the bullish count, only time will tell us which count is the correct one.
Trading recommendation:
Our stop at 1.6200 was hit for a small profit. We will sell EUR at 1.6195 with a stop and revers at 1.6295.
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Performed by Torben Melsted, Analytical expert InstaForex Group © 2007-2014 |
Elliott wave analysis of EUR/NZD for April 30, 2014
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