FX.co ★ Elliott Wave analysis of EUR/NZD for April 12, 2013

Today's Support and Resistance levels:

S1: 1.5161 R1: 1.5225

S2: 1.5121 R2: 1.5301

S3: 1.5080 R3: 1.5353

Technical overview:

The break below 1.5173 invalidated our bullish count. We have changed our count slightly. Marking the bottom at 1.5173 as wave iii of c and the top at 1.5521 as wave iv of c and the decline to 1.5080 was most likely wave v of c. As can be seen on the chart above the price quickly turned once 1.5080 was hit and performed a morning star candle, which is a sign of exhaustion. However, we need more proof that a bottom is indeed in place and a break above 1.5224 we be the first indication, that the test of 1.5080 was indeed the bottom, while a break above 1.5373 is needed to confirm the bottom and confirm the next powerful rally higher.

Trading recommendation:

Our stop at 1.5170 was hit and now we are looking for a new EUR-buying opportunity. We will buy EUR at 1.5170 or upon a break above 1.5224 with a stop at 1.5075.