FX.co ★ Elliott Wave analysis of EUR/NZD for March 25, 2013

Today's Support and Resistance levels:

S1: 1.5601 R1: 1.5650

S2: 1.5575 R2: 1.5678

S3: 1.5534 R3: 1.5709

Technical overview:

The correction from 1.5454 has been larger than we anticipated, but we should be close to a top here in the 1.5623 - 1.5650 area for a break below 1.5575, which indicates that wave C down towards at least 1.5390 and ideally down to 1.5200 is well under way. As long as support at 1.5575 protects the downside we must accept a move closer to 1.5650, but any break above 1.5709 will be a warning that wave e could have fallen short of it is ideal target, while a break above 1.5770 will confirm a call for a new rally higher.

Trading recommendation:

We are short EUR from 1.5655 with stop at break even. If you are not short EUR already we will recommend you to sell in the 1.5623 - 1.5650 area with a stop a 1.5710.