FX.co ★ Elliott Wave analysis of EUR/NZD for January 15, 2013

Today's support and resistance levels:

S1: 1.5879 R1: 1.5926

S2: 1.5839 R2: 1.5977

S3: 1.5781 R3: 1.6057

Technical overview:

The correction from the 1.5977 high became slightly deeper than we expected with the test of 1.5837, but it is still a very small correction with sub-normal characters. We are now looking for a break above minor resistance at 1.5926, which will confirm a new rally higher to 1.5977 towards the next targets at 1.6087 and at 1.6217. In the long term we are looking for much higher levels. In the short term the risk is a break below 1.5837, which will call for a deeper and more normal correction towards 1.5797 and maybe even down to 1.5747 before the next rally higher can be expected.

Trading recommendation:

We are long EUR from 1.5655 with stop at breakeven. If you are long EUR already, then buy a break above 1.5926 with the same stop.