FX.co ★ Elliott Wave analysis of EUR/NZD for March 14, 2013

Today's Support and Resistance levels:

S1: 1.5807 R1: 1.5878

S2: 1.5780 R2: 1.5933

S3: 1.5739 R3: 1.5975

Technical overview:

We saw a break below important support at 1.5718, but only a very brief break and the following rally looks very impulsive. This is another warning that this wave e likely will fall short of its ideal target. That said, we need a break above 1.5878 and, more importantly, a break above 1.5934 to confirm, that we have seen a bottom at 1.5592 and that a new rally higher has begun. As long as resistance at 1.5878 protects the upside we are still very cautiously bearish. But we need some serious proof, in form of a break below support at 1.5739 and, more importantly, a break below 1.5657 to confirm renewed downside pressure.

Trading recommendation:

We are short EUR from 1.5858. We will lock in a small profit here at 1.5832. We will stay neutral for now, but place a EUR-buy order at 1.5885 with a stop at 1.5655 just in case we have seen a bottom.