EUR/NZD failed to build on the rally from 1.6495, which has invalidated the potential ending diagonal. Instead a more complex b wave correction is building, which could take us all the way down to 1.6469 before moving higher to 1.6741 to complete wave iv and set the stage for a decline in wave v towards 1.6169.
Short-term a break above minor resistance at 1.6545 will indicate wave b of iv has completed, while a break above resistance at 1.6593 will confirm wave b has completed and wave c higher to 1.6741 is developing.
R3: 1.6620
R2: 1.6593
R1: 1.6545
Pivot: 1.6500
S1: 1.6469
S2: 1.6428
S3: 1.6400
Trading recommendation:
We will buy a break above 1.6545 and place our stop at 1.6485. If our buy order is done, we will place take profit at 1.6725.
