FX.co ★ Elliott Wave Analysis of EUR/NZD for December 13, 2012

Today's Support and Resistance Levels:

S1: 1.5500 R1: 1.5528

S2: 1.5457 R2: 1.5545

S3: 1.5390 R3: 1.5600

Technical Overview:

Resistance at 1.5528 keeps protecting the upside, but we think it is only a matter of time before this resistance level will be broken and a major bullish potential is released. Once we break above 1.5528 we should quickly see resistance at 1.5600 broken too for a continuation higher towards the next strong resistance near 1.5904. That said, we must be aware of the downside risk as long as resistance at 1.5528 has not been broken. We do not prefer the option of a quick spike below 1.5457, but of cause cannot rule out the possibility. However, one is for sure a break below 1.5390 cannot be allowed at any point, as that calls for a more bearish scenario.

Trading Recommendation:

We are long EUR from 1.5510 with a stop at 1.5385. If you are not long EUR already, then use a break above 1.5528 to buy EUR.