FX.co ★ Elliott Wave analysis of EUR/NZD for January 22, 2013

Today's Support and Resistance levels:

S1: 1.5836 R1: 1.5907

S2: 1.5818 R2: 1.5946

S3: 1.5780 R3: 1.6000

Technical overview:

It seemed like we have seen the bottom of green wave ii at 1.5813 and we are now looking for a break above 1.5907 as the first indication that the bottom is in place. However, we will need a break above 1.5947 to confirm that bottom and to confirm the next rally higher towards 1.6054 and beyond towards 1.6267. As long as minor resistance at 1.5907 protects the upside we must allow for a little more downside, but we cannot go below 1.5780 under any circumstance, as that would invalidate our count and call for a decline to at least 1.5703.

Trading recommendation:

We are long EUR from 1.5655 with a stop at 1.5755. If you are not long EUR already you can buy a break above 1.5907 with the same stop.