FX.co ★ Elliott Wave Analysis of EUR/NZD for January 9, 2013

Today's Support and Resistance Levels:

S1: 1.5540 R1: 1.5714

S2: 1.5480 R2: 1.5752

S3: 1.5445 R3: 1.5791

Technical Overview:

We have observed a new low. We are getting very close to the support line from August 2012. This support line will ideally protect the downside for a rally above minor resistance at 1.5752 and, more importantly, a break above 1.5841, which will confirm the bottom for a new rally higher towards 1.6058 and above 1.6219. However, if the support line is broken we have one last line of defence with the low of black wave ii at 1.5445. If this support breaks too, then the above count is wrong and we will have to adapt a much more bearish count.

Trading Recommendation:

We are long EUR from 1.5655 with a stop at 1.5440.