Elliott wave analysis of EUR/NZD for November 20, 2017

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Wave summary:

We have seen a nice rally above 1.7216, but something is not right... The momentum indicators are not confirming the rally, which had us review the rally from 1.5227. The rally from 1.5227 to 1.7408 could be counted as a complete impulsive rally (see above) If this is correct, then a deeper corrective decline closer to at least 1.6614 and possibly even closer to 1.6298 should be expected in wave ii before the next rally higher.

Short-term a break below minor resistance at 1.7100 will favor this outcome.

R3: 1.7408

R2: 1.7325

R1: 1.7217

Pivot: 1.7100

S1: 1.7058

S2: 1.6916

S3: 1.6805

Trading recommendation:

We are long EUR from 1.6770 and we will move our stop higher to 1.7085

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