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Elliott wave analysis of EUR/NZD for June 2 - 2016

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Wave summary:

Despite all the disappointments, we remain optimistic in regard to this currency pair in the longer term. However, for the short term it looks as more corrective weakness should be seen towards 1.6248 before the corrective decline from 1.6931 is over. From 1.6248 or upon a break above 1.6487, renewed upside pressure is expected for a test of important short-term resistance at 1.6654, and a move above here will confirm that a low is in place for a rally towards 1.6931 and above.

Only an unexpected break below support at 1.6196 will make us very cautious, while a break below 1.6062 will invalidate the bullish view.

Trading recommendation:

Buy EUR at 1.6255 or upon a break above 1.6487 with a stop at 1.6195.

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