Elliott wave analysis of EUR/NZD for July 26, 2018

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Short-term important resistance at 130.44 continues to cap the upside, which has resulted in a spike lower to 129.37. This likely marks the low for red wave ii/. The decline to 129.37, means that the ongoing correction from 131.99 has moved into the range of red wave i. Therefore this decline cannot be red wave iv but has to be a correction of a lower degree.

To confirm the completion of this red wave ii/ correction, we still need a break above short-term important resistance at 130.44. A break above here will call for a rally to 133.60 on the way higher to 135.74, which marks the S/H/S bottoms target.

R3: 130.76

R2: 130.44

R1: 130.28

Pivot: 129.90

S1: 129.71

S2: 129.48

S3: 129.37

Trading recommendation:

We will buy a break above 130.44 and place our stop 10 pips below the most recent low. If this low is 129.37, that would mean a stop at 129.27.

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