FX.co ★ Elliott Wave Analysis of EUR/NZD for April 19, 2013

Today's Support and Resistance levels:

S1: 1.5466 R1: 1.5534

S2: 1.5408 R2: 1.5577

S3: 1.5356 R3: 1.5614

Technical overview:

If we saw wave c of the expanding flat correction ending at 1.5308 yesterday, then wave v of c ended with a failure (no new low below wave iii of c was seen), this is normally a sign of strength of the underlying trend, which in this case is up. If we saw wave ii end at 1.5308, we are likely to see a very powerful rally above 1.5577 and ideally we will see support at 1.5464 protect the downside for the break above 1.5577 and higher towards 1.5683 and 1.5818. A break below 1.5464 and more importantly a break below 1.5427 will indicate that the correction in wave ii is ongoing and that we should expect a decline towards the 1.5355 - 1.5376 area before wave ii is over.

Trading recommendation:

We go long the EUR/NZD from 1.5530 and move our stop higher to 1.5400. If we miss the moment, then buy EUR at break above 1.5534 with the same stop.