FX.co ★ Elliott Wave Analysis of EUR/NZD for December 17, 2012

Today's Support and Resistance Levels:

S1: 1.5538 R1: 1.5600

S2: 1.5497 R2: 1.5650

S3: 1.5445 R3: 1.5790

Technical Overview:

As we had broken above the first resistance at 1.5528, we get the first clue that an important bottom is in place as well. However, we would like to see a break above resistance at 1.5600 soon to gain even more confidence that an important bottom is in place for the next powerful rally towards 1.5927. Because of the speed of the decline in wave ii we will not have too many good resistance points on the way up again, but we will find resistance at 1.5675 and again at 1.5780. Support is now found at 1.5530, which will ideally hold any setbacks, but it will still take a break below 1.5390 to invalidate our bullish count.

Trading Recommendation:

We are long EUR from 1.5510 and will move our stop higher to breakeven at 1.5510. If you are not long EUR already, buy a break above 1.5600 with the same stop.