Today's Support and Resistance levels:
R3: 1.7168
R2: 1.7122
R1: 1.7056
Current Spot: 1.7024
S1: 1.6989 (Invalidation of our preferred count)
S2: 1.6950
S3: 1.6912
Technical summary:
We still think, that the ascending wave iii is developing. For now, we have seen the red wave i and the red wave ii has bottomed at 1.6996. We are now looking for a break above 1.7056 as the first good indication that the red wave ii is over. A break above strong short-term resistance at 1.7122 will confirm that the red wave ii is over and that the powerful red wave iii is developing, at least, to 1.7455 and likely higher. It indicates that as long as the minor resistance at 1.7056 protects the upward movement, the risk appears in case of a break below 1.6989. It would invalidate our preferred short-term count (see the chart below) and tell us that wave ii is expanded flat correction and a decline closer to 1.6912 should be seen.
Trading recommendation:
Stay long in EURNZD from 1.7185 with a stop at 1.6985. If you are not long yet, buy EUR at 1.7024 or after a break above 1.7056 with the same low-risk stop at 1.6985.
