FX.co ★ Elliott Wave Analysis of EUR/NZD for April 22, 2013

Today's Support and Resistance Levels:

S1: 1.5456 R1: 1.5524

S2: 1.5406 R2: 1.5563

S3: 1.5357 R3: 1.5614

Technical overview:

With the failure to break above 1.5577 it is still an open question whether we have seen the bottom of wave ii at 1.5408 or not. We still think that the odds favor the bottom-scenario slightly, but we will wait patiently for the confirmation, which a break above 1.5546 and more importantly a break above 1.5577 will be. Once resistance at 1.5577 is cleared we should see a powerful rally towards at least 1.5683 and likely even higher towards 1.5818. In short term we are looking for one last small decline to 1.5439 and maybe even 1.5426 before the next real upside pressure kicks in, but it will take a break above 1.5546 to indicate that wave ii is over and wave iii is developing.

Trading recommendation:

We go long the EUR/NZD from 1.5530 with a stop at 1.5400. If you are not long the EUR already, then buy the EUR close to 1.5439 or upon a break above 1.5546 with the same stop.