EUR/NZD is accelerating lower, but we expect support at 1.7010 will be able to act as the first floor for the ongoing decline, which is aimed for 1.6591 as the first major support.
Short term, the decline from 1.7929 is now in five waves. Red wave v will be equal in length to the distance traveled from the top of red wave i through red wave iii measured to the peak of red wave iv at 1.7010. This will normally be the maximum a fifth wave extension will travel. That said, we will stress, that in rare cases a wave five extension can be 1.618 times the length of wave i through wave iii, which in this case would mean a decline to 1.6653. The decline from 1.7929 already is pretty extended, so that is not our preferred count, but it can not be excluded.
R3: 1.7296
R2: 1.7238
R1: 1.7174
Pivot: 1.7140
S1: 1.7101
S2: 1.7060
S3: 1.7010
Trading recommendation:
We will buy EUR at 1.7025 with our stop placed at 1.6950.
The material has been provided by InstaForex Company -
www.instaforex.com