FX.co ★ Elliott Wave analysis of EUR/NZD for February 7, 2013

Today's Support and Resistance levels:

S1: 1.6086 R1: 1.6168

S2: 1.6043 R2: 1.6211

S3: 1.5990 R3: 1.6277

Technical overview:

Important support at 1.5752 protected the downside well and we are currently testing the minor resistance line from 1.6359. A break above this resistance line will confirm the next rally higher towards 1.6278 and 1.6359 on the way towards the ideal target at 1.6524, where blue wave iii will be 1.618 times longer than blue wave i. In the short term we will find support at 1.6043 and important support at 1.5990. Any break below 1.5990 will indicate a much deeper decline and that our count is wrong.

Trading recommendation:

We are long EUR from 1.6045 and will move our stop+revers up to 1.5985.