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

Today's Support and Resistance levels:
S1: 1.5600 R1: 1.5776
S2: 1.5528 R2: 1.5838
S3: 1.5557 R3: 1.5917

Techical overview:

We also saw a big gap down in this cross and the trading week began. We expect the gap down from 1.5776 to 1.5704 will be closed soon. That said, the failure to hold the break above 1.5878 is a sign of underlying weakness as we should watch out for renewed weakness once the gap is closed. The failure to break towards the upside keeps the triangle scenario alive and therefore, a trust out of the triangle towards the downside is still the most likely outcome here. A break below 1.5600 will call for a decline to at least 1.5390 and likely even down closer to 1.5200. To change this scenario it will take a break above resistance at 1.5934.

Trading recommendation:

Our stop at 1.5760 has been taken out this morning, but because of the gap we were first filled at 1.5700. We are looking for a new shorting opportunity at 1.5765 with a stop at 1.5920.