FX.co ★ Elliott Wave Analysis of EUR/NZD for December 19, 2012

Today's Support and Resistance Levels:

S1: 1.5771 R1: 1.5838

S2: 1.5739 R2: 1.5906

S3: 1.5692 R3: 1.5927

Technical Overview:

Once resistance at 1.5600 finally gave away, there was no looking back. Now we are well on the way to test strong resistance at 1.5927. However, resistance 1.5927 should only be able to put up a fight for so long and once it is broken the next target is 1.6011. Short-term support should be found at 1.5771 and a more solid support at 1.5739. That said, it should be remembered that we are in wave iii of 3 and corrections during wave 3 tend to be small and even sub-normal, so do not expect too much price-action towards the downside.

Trading Recommendation:

We are long EUR from 1.5510 and will lift our stop to 1.5555. If you are not long EUR already the use even the smallest setback to buy EUR with the same stop.