FX.co ★ Elliott Wave Analysis of EUR/NZD for December 27, 2012

Today's Support and Resistance Levels:

S1: 1.6104 R1: 1.6161

S2: 1.6064 R2: 1.6217

S3: 1.6037 R3: 1.6261

Technical Overview:

There was no time for a correction here as the rally higher towards the next target near 1.6206 took place. With a high at 1.6217 we could have seen a top, but to confirm that we need a break below support at 1.6083 and more importantly a break below 1.5962, which will confirm that a deeper correction towards 1.5923 is taking place. We have to remember that we are in wave 3 higher and corrections in wave 3 tend to be small and even sub-normal. As support at 1.6083 protects the downside, we could see a continuation slightly higher towards 1.6261, but this rally is clearly becoming stretched and we should expect a bigger correction soon.

Trading Recommendation:

We took profit at 1.6185 on our long EUR position from 1.5510. We will be looking for a new EUR buying opportunity.