FX.co ★ Elliott Wave analysis of EUR/NZD for April 11, 2013

Today's Support and Resistance levels:

S1: 1.5200 R1: 1.5228

S2: 1.5180 R2: 1.5248

S3: 1.5166 R3: 1.5288

Technical overview:

Wave ii has corrected exactly 100% of wave i which is allowed under the Elliott Wave Principle. But it should also be mentioned, that if wave ii had broken below wave i with just one tick, our bullish count would have been invalidated. If wave ii bottoms at 1.5173, then we should see a break above 1.5228 and, more importantly, a break above 1.5248 soon. A break above 1.5248 will be the first good indication that a bottom might be in place. To confirm the bottom, however, we need a break above 1.5333 which would call for a rally back to 1.5521 in a perfect double bottom. That said, we must be aware that any break below 1.5173 will invalidate our current bullish count, but we still think that the potential downside pressure is very limited.

Trading recommendation:

We are long EUR from 1.5315 with a stop at 1.5170. If you are not long EUR already, then buy a break above 1.5248 with the same stop.