FX.co ★ Elliott Wave analysis of EUR/NZD for February 11, 2013

Today's Support and Resistance levels:

S1: 1.6018 R1: 1.6072

S2: 1.5975 R2: 1.6126

S3: 1.5945 R3: 1.6147

Technical overview:

The break below 1.5990 invalidated our bullish count and we have had to change our count to a more bearish one. This count says we are still in a very complex wave 2 correction, which should take us lower towards the base-channel support-line near 1.5700. In the short term we are looking for strong resistance near 1.6072, which we expect will protect the upside for a break below 1.5988 and, more importantly, a break below 1.5945 confirming a continuation down towards 1.5750. A break above 1.6072 would be a surprise, but at no point can a break above 1.6147 be allowed under this count.

Trading recommendation:

We are short EUR from 1.5985, we will place our stop at 161.50 and take profit at 1.5765. If you are long short EUR already, then sell close to 1.6072 with the same stop and take profit levels.