Elliott wave analysis of EUR/NZD for December 3, 2018

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EUR/NZD has extended its decline and has tested 1.6384 as its lowest point. We currently see positive divergence between the 1.6384 low and the 1.6553 low. This indicate a loss of downside momentum, but to indicate a low is in place, we need a break above minor resistance at 1.6477 and more importantly a break above resistance at 1.6542 that calls for a rally back towards resistance near 1.6767.

As long as minor resistance at 1.6477 is able to cap the upside, we can not exclude more downside pressure, but the loss of downside momentum indicates a limited downside pressure at best.

R3: 1.6627

R2: 1.6542

R1: 1.6515

Pivot: 1.6477

S1: 1.6417

S2: 1.6384

S3: 1.6345

Trading recommendation:

WE bought EUR at 1.6480 and we will placed our stop at 1.6380.

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