FX.co ★ Elliott Wave analysis of EUR/NZD for February 18, 2013

Today's Support and Resistance levels:

S1: 1.5764 R1: 1.5881

S2: 1.5721 R2: 1.5940

S3: 1.5640 R3: 1.6005

Technical overview:

We have seen the expected bottom in the 1.5650 - 1.5700 area with a low at 1.5640 and the following break above 1.5803 is the first indication that a bottom might be in place. That said we expect one more new high near 1.5880 before a deep correction sets in. This correction should at least take us down to 1.5762 and likely even down to 1.5711 before we can expect the next upswing to take place. Even though we do expect a bottom to be in place, we need a break above 1.5945 and, more importantly, a break above 1.6134 to confirm the bottom for the next rally higher towards 1.6359 and higher.

Trading recommendation:

We will look for a EUR-buying opportunity at 1.5770 with a stop at 1.5635.