Wave summary:
EUR/NZD is pushing the downside limit at 1.4654 (the low has been seen at 1.4657). Important support at 1.4654 will have to continue to protect the downside for a break above minor resistance at 1.4848 and more importantly for a break above resistance at 1.4953. That confirms the next impulsive rally higher towards 1.5282 and 1.5837. However, if important support at 1.4654 is broken, that will revive the corrective decline from 1.7118 for a move closer to 1.4455 as the next corrective downside target. We do favor the immediately bullish scenario, but we need to be aware of the risk if support at 1.4654 is broken.
R3: 1.4953
R2: 1.4891
R1: 1.4848
Pivot: 1.4770
S1: 1.4654 - The low on December 13 - 2016
S2: 1.4547
S3: 1.4455
Trading recommendation:
WE are long EUR from 1.4884 with stop placed at 1.4650. If you are not long EUR yet, then buy a break above 1.4848 or more conservatively wait for a break above 1.4953 and use the same stop at 1.4650.
