Today's Support and Resistance Levels:
R3: 133.37
R2: 132.80
R1: 132.57
Current Spot: 132.33
S1: 132.15
S2: 131.73
S3: 131.37
Technical Summary:
The correction from 133.37 has become deeper than first expected and by breaking below 131.84 I have had to change my count slightly. The change has only left us with an even more bullish 1-2/1-2 count and once wave three really takes over it should be a very powerful rally higher towards 138.00, but first we need to figure out is, what we can expect for the short term. For the short term I am looking for a minor correction towards the 132.15-132.24 area before the next rally higher. A break above 132.57 will confirm the rally higher towards 133.37 and higher towards 138.00. Only a break below 131.73 will delay the rally higher for a push low towards 131.37 before we move higher again.
EUR/NZD
Today's Support and Resistance Levels:
R3: 1.6514
R2: 1.6452
R1: 1.6412
Current Spot: 1.6369
S1: 1.6315
S2: 1.6283
S3: 1.6247
Technical Summary:
With the break below important support at 1.6325 we knew, that the previous preferred count was incorrect and the alternative count, that I have been showing for the last few days has now become the preferred count. This count tells us, that the C-wave of a large expanding flat correction is still developing. The first target for this C wave is at 1.6247 and we could even see it lower towards 1.6117, where we find a cluster of support. In an expanded flat correction, the A and C wave normally relate to one another with some Fibonacci relationship. And the first comes in at 1.6247, where wave C will be 1.236 times longer than wave A. If we break clearly below 1.6247 the next target becomes 1.6117, where wave C will be 1.382 times longer than wave A.These slightly odd Fibonacci extension target are only used when we are in a correction. Looking at the internal structure of wave C a bottom near 1.6247 we fit the picture nicely, but we need to stay flexible.
To confirm that wave C has ended we need a break above 1.6515 and more importantly a break above 1.6565.
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