FX.co ★ EUR/NZD Elliott Wave analysis for February 8, 2013

Today's support and resistance levels:

S1: 1.6043 R1: 1.6082

S2: 1.5990 R2: 1.6122

S3: 1.5970 R3: 1.6190

Technical overview:

We saw the expected break above the minor resistance line from 1.6359, but it was clearly a failure break, which is of concern to our overall bullish count. That said, a break below 1.5990 is needed to invalidate our count and cause reevaluation to a more bearish count. However, as long as important support at 1.5990 protects the downside, we will be looking for a break above 1.6081 and, more importantly, a break above 1.6147, which will confirm a new rally higher towards 1.6278 and 1.6359, towards the ideal target at 1.6524.

Trading recommendation:

We long EUR from 1.6045 and have stop+revers at 1.5985. If you have not opened a long position on EUR yet, then buy at a break above 1.6081 with the same stop+revers at 1.5985.