EUR/NZD - Elliott Wave Analysis for August 20 - 2012

EUR/NZD Daily

EUR/NZD 4 Hourly

Today's Support and Resistance Levels:

S1: 1.5210 R1: 1.5301

S2: 1.5187 R2: 1.5335

S3: 1.5170 R3: 1.5386

Technical Overview:
Looking at the larger picture we expect that an important bottom is in place with1.4968 low and that a new long term uptrend is developing. The first good indicator that an important bottom is indeed in place, will come from a break above resistance in the 1.5543 - 1.5504 area. A break above 1.5504 will confirm much higher levels in the longer term.
Zooming in on the rally from the 1.4968 low is the best count at this point which proves that we have seen a series of waves one's and two's. In short term we are looking for a minor setback to near 1.5170 before the next more powerful rally in blue wave iii sets in for a rally towards 1.5500 and maybe even higher.

Trading Recommendation:
If you are not long EUR against NZD already, buy EUR at 1.5180 with a 1.5090 stop and consider taking profit near 1.5485.