FX.co ★ Elliott Wave analysis of EUR/NZD for March 26, 2013

Today's Support and Resistance levels:

S1: 1.5391 R1: 1.5454

S2: 1.5365 R2: 1.5498

S3: 1.5323 R3: 1.5548

Technical overview:

We have finally seen the break below support at 1.5390 that means that all demands for wave e of the expanding triangle now is fulfilled. That said, we would like to see this e wave decline a little further towards 1.5200 before bottoming out for the next rally higher. That said, we should be aware that a break above 1.5469 could be a first warning that the bottom is in place, but we need a break above 1.5560 and, more importantly, a break above 1.5627 to confirm the bottom and a new major rally.

Trading recommendation:

We are short EUR from 1.5655 and will move our stop + reverse of our short EUR-position to a long EUR-position lower to 1.5475. Stop-profit will be placed at 1.5250.