EUR/NZD failed in its first attempt to break above resistance at 1.7732. We still think that red wave v already is developing for a rally to at least 1.8030 and if this is the case, then support at 1.7580 ideally should protect the downside for renewed upside pressure and this time a break above a break above 1.7732 for confirmation that red wave v is moving higher towards 1.8030.
Only and unexpected break below 1.7538 will keep red wave iv alive, but the potential downside should be very limited and no lower than 1.7488.
R3: 1.7823
R2: 1.7783
R1: 1.7732
Pivot: 1.7651
S1: 1.7626
S2: 1.7580
S3: 1.7538
Trading recommendation:
We are long EUR from 1.7615 with our stop placed at 1.7515. Upon a break above 1.7732 we will move our stop higher to 1.7575 and we will take profit on half our position at 1.8000.
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