FX.co ★ Elliott Wave Analysis of EUR/NZD for February 27, 2013

Today's Support and Resistance Levels:

S1: 1.5820 R1: 1.5854

S2: 1.5789 R2: 1.5885

S3: 1.5755 R3: 1.5931

Technical Overview:

The move above 1.5851 was a major surprise, but it does not change our call for a new powerful decline towards at least 1.5363 and more likely even lower towards 1.5234 once this ongoing expanded flat wave b correction is over. Short-term we are looking for one last minor rally towards 1.5930 before the final c-wave down takes over. That said, we should be aware that a direct break below 1.5788 and more importantly a break below 1.5769 indicates that wave c down is already developing.

Trading Recommendation:

Our break-even stop at 1.5840 was hit yesterday, but we will be looking to sell EUR again at 1.5915 or a break below 1.5769 (one order done cancels the other). Stop will be placed at 1.6030 and take profit will be placed at 1.5250.