FX.co ★ EUR/NZD Elliott Wave analysis for February 15, 2013

Today's support and resistance levels:

S1: 1.5648 R1: 1.5745

S2: 1.5581 R2: 1.5803

S3: 1.5528 R3: 1.5882

Technical overview:

We have seen the expected decline back to the channel support line near 1.5700, and we should expect support in this area to be much stronger. We do not have any evidence of a bottom yet, but we will look for a bottom to form within the 1.5650-1.5700 area for a break above resistance at 1.5803, which will be the first indication that a bottom is in place. That said, we will have to accept that this decline could go even lower towards 1.5540 before the bottom is in place. Remember we are in a very complex correction since the 1.5902 high back in early September.

Trading recommendation:

We will short EUR from 1.5985. We will fix our profit here and wait for more clues that a bottom is developing, before entering a long position on EUR.