EUR/NZD - Monthly
EUR/NZD - 4 Hourly
Today's Support and Resistance Levels:
S1: 1.5745 R1: 1.5836
S2: 1.5705 R2: 1.5906
S3: 1.5652 R3: 1.6009
Technical Overview:
Looking at monthly chart first, we can see that we have encountered strong resistance near 1.6059 in form of a long-term downtrend line, going back to early 2011. We still think that this resistance will ultimately be broken, which will open up for a much larger rally higher. The first major target will be at 1.6967, but in the long term we should see a much larger rally once this downtrend line is broken.
Looking at the 4 hourly chart, we suppose that we ended a expanded flat correction at 1.5690 and we should see a break above minor resistance at 1.5836 soon, which will confirm the bottom and the next rally higher. The first target for black wave iii is at 1.6516, but we think that it likely will extend towards 1.6712 and maybe even 1.6967.
Trading Recommendation:
You should be long EUR from 1.5790 with a 1.5700 stop. If you are not long EUR already you should buy here or a break above 1.5836 with the same stop.
