FX.co ★ Elliott Wave analysis of EUR/NZD for April 9, 2013

Today's Support and Resistance levels:

S1: 1.5359 R1: 1.5420

S2: 1.5310 R2: 1.5462

S3: 1.5280 R3: 1.5521

Technical overview:

With the break below support at 1.5406 we knew we were looking for a deeper correction as wave ii unfolded. We expect to see a correction to at least the area of 1.5333 - 1.5350. As it is wave ii it could become deeper, but we have noticed that correction in impulsive waves, in this cross, tends to be sub-normal. Once this correction is over near 1.5333 or upon a break above 1.5462 we should see a powerful rally towards at least 1.5883 and possibly even higher. In the short term we expect minor resistance at 1.5419 will protect the upside for a break below 1.5859 confirming one last decline into the target-area between 1.5333 - 1.5350.

Trading recommendation:

We are long EUR from 1.5315 with a stop at 1.5170. If you are not long EUR already, then we recommend buying EUR near 1.5333 with the same stop.