EUR/NZD has spiked below our expected downside target at 1.7010. This is of course of concern to our preferred short-term count. However. the decline from 1.7929 looks overextended and it should just be a matter of time before a low is seen for a corrective rally higher towards at least 1.7304 and likely even closer to resistance in the 1.7543 - 1.7588 area before the next leg lower.
Short-term a break above minor resistance at 1.6997 and more importantly a break above resistance at 1.7074 will confirm that wave A has completed and wave B is developing.
R3: 1.7184
R2: 1.7120
R1: 1.7074
Pivot: 1.6997
S1: 1.6927
S2: 1.6893
S3: 1.6858
Trading recommendation:
We bought EUR at 1.7025, but our stop at 1.6850 was hit almost immediately. We will re-buy EUR upon a break above 1.6997.
