FX.co ★ Elliott Wave Analysis of EUR/NZD for February 13 - 2013

Today's Support and Resistance Levels:

S1: 1.5946 R1: 1.6004

S2: 1.5894 R2: 1.6038

S3: 1.5835 R3: 1.6074

Technical Overview:

The picture is very muddy, but with the break below the support line from 1.5506 our main focus is shifting towards the downside and a new test of the base channel support line near 1.5700. In the larger picture we concider the entire overlapping structure since the high at 1.5905 in September 2012 as wave 2, which proves that it has taken much longer, than we could normally expect. In short term we find resistance at 1.6038, which we expect will hold for a break below 1.5941 confirming a continuation lower towards 1.5898 and 1.5824 as the next minor targets.

Trading Recommendation:

We are short EUR from 1.5980 with a Stop at 1.6075. We will move our Stop lower to 1.6045 once support 1.5941 breaks.