Elliott wave analysis of EUR/NZD for August 22, 2018

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EUR/NZD once again failed to break above important short-term resistance at 1.7355 and instead turned around to make a small new low at 1.7211. This is a disappointment and keeps red wave ii alive, but it does not change our larger bullish count calling for more upside pressure above 1.7484 longer-term. To confirm that red wave ii has completed, we still need a break above resistance at 1.7355 and as long as this short-term important resistance remains able to cap the upside, red wave ii could dip closer to 1.7196, but the potential downside should be limited to here for a break above minor resistance at 1.7327 and more importantly a break above 1.7355 confirming red wave iii is developing for a rally above 1.7484.

R3: 1.7355

R2: 1.7327

R1: 1.7275

Pivot: 1.7255

S1: 1.7221

S2: 1.7196

S3: 1.7162

Trading recommendation:

Ous stop was hit for a small loss of 20 pips. We will re-buy EUR at 1.7205 or upon a break above 1.7327 and place our stop at 1.7200.

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