Elliott wave analysis of EUR/NZD for January 26, 2017

Wave summary:

EUR/NZD is pushing the downside limit at 1.4654 (the low has been seen at 1.4657). Important support at 1.4654 will have to continue to protect the downside for a break above minor resistance at 1.4848 and more importantly for a break above resistance at 1.4953. That confirms the next impulsive rally higher towards 1.5282 and 1.5837. However, if important support at 1.4654 is broken, that will revive the corrective decline from 1.7118 for a move closer to 1.4455 as the next corrective downside target. We do favor the immediately bullish scenario, but we need to be aware of the risk if support at 1.4654 is broken.

R3: 1.4953

R2: 1.4891

R1: 1.4848

Pivot: 1.4770

S1: 1.4654 - The low on December 13 - 2016

S2: 1.4547

S3: 1.4455

Trading recommendation:

WE are long EUR from 1.4884 with stop placed at 1.4650. If you are not long EUR yet, then buy a break above 1.4848 or more conservatively wait for a break above 1.4953 and use the same stop at 1.4650.

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