Elliott wave analysis of EUR/NZD for May 11, 2017

Wave summary:

We have seen the expected decline closer to 1.5645 (the low came in at 1.5588) before a strong recovery was seen. We will now be looking for a break above 1.6020 as confirmation that the next impulsive rally higher towards 1.6655 is developing.

Short-term, we should see support in the 1.5726 – 1.5764 area for the expected break above 1.6020.

Only an unexpected break below support at 1.5588 will delay the expected rally in a more complex correction.

R3: 1.6100

R2. 1.6020

R1: 1.5958

Pivot: 1.5900

S1: 1.5806

S2: 1.5764

S3: 1.5726

Trading recommendation:

We bought EUR at 1.5665 and will place our stop at 1.5585. If you are not long EUR yet, then buy in the 1.5726 – 1.5764 area and use the same stop.

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

Source:: Elliott wave analysis of EUR/NZD for May 11, 2017