FX.co ★ Elliott Wave analysis of EUR/NZD for January 24, 2013

Today's Support and Resistance levels:

S1: 1.5750 R1: 1.5855

S2: 1.5703 R2: 1.5907

S3: 1.5673 R3: 1.5964

Technical overview:

We are still looking for one last decline towards our target at 1.5703 as long as minor resistance at 1.5836, and more importantly minor resistance at 1.5855 protects the upside. From support at 1.5703 or upon a break above resistance at 1.5836 we will be looking for the next strong and impulsive rally towards the top at 1.6218 and higher towards 1.6500. Expanded flat corrections normally indicates that the following impulsive wave will be an extended wave, which in this case means a rally higher to at least 1.6500, where blue wave iii will be 1.618 times longer than blue wave i. However, for now we are still looking for one last decline down to 1.5703 as long as minor resistance at 1.5836 stays unbroken.

Trading recommendation:

We are short EUR from 1.5830. We will book a small profit here at 1.5790 and place a EUR-buy order at 1.5725 or at 1.5840 (one order cancels the other) with a stop at 1.5500 expecting to move the stop higher as soon as blue wave iii takes over.