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Elliott wave analysis of EUR/NZD for July 18 - 2016

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Wave summary:

Our warning of a possible low in wave C already in place at 1.5072 if the minor resistance near 1.5455 was broken seems to have been well placed. We have seen this minor resistance line being broken as it wasn't there at all calling for more upside pressure towards 1.5722 to complete wave i and set the stage for a correction in wave ii closer to 1.5335 before moving higher again.

In the short term, we will ideally see minor support at 1.5482 protect the downside for a rally closer to 1.5722. A break below 1.5482 will be the first indication that wave i is in place and wave ii is unfolding.

Trading recommendation:

Our stop+reverse at 1.5475 was hit. We are long in EUR at 1.5475 and will place our stop at break-even and take profit at 1.5700. Then we will wait for the possibility to re-buy EUR near 1.5335.

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