Today's Support and Resistance Levels:
S1: 1.5330 R1: 1.5371
S2: 1.5314 R2: 1.5406
S3: 1.5294 R3: 1.5443
Technical Overview:
We saw the expected move higher yesterday, but it fixed already at 1.5442 and the following decline has made the structure from 1.4968 of overlapping nature which means that the only impulsive count that fits this structure is a Leading Diagonal. If this count is correct, we should now see a deep decline in red wave 2 towards 1.5148 before the next rally higher.
In short term we should expect a move towards 1.5375 and possibly even 1.5403 before the downside pressure takes over again for a decline towards 1.5148 in red wave 2.
Trading recommendation:
Our stop at 1.5355 was triggered yesterday. We are now looking for an opportunity to sell EUR against NZD at 1.5400 with a 1.5445 stop. Take profit and reverse the position to long EUR at 1.5160.
