FX.co ★ Elliott Wave Analysis of EUR/NZD for September 16, 2013

Today's Support and Resistance levels:

R3: 1.6485

R2: 1.6421

R1: 1.6364

Current Spot: 1.6297

S1: 1.6271

S2: 1.6227

S1: 1.6181

Technical summary:

We have now seen two attempts to break below 1.6247 and both of them has been rejected. However, we need a break above resistance at 1.6364 and more importantly we need a break above resistance at 1.6421 to confirm that the downward C-wave from 1.7274 has finally come to an end and that the next impulsive rally higher has begun. That said, as long as resistance at 1.6421 protects the upside we should accept the possibility of a deeper correction towards 1.6117, but for that outcome we need a clear and sustained break below 1.6247.

Trading recommendation:

If you are long in EUR from 1.6255, keep your stop at 1.6200. However, if you are not long in EUR yet, wait for a break above 1.6421 to buy EUR with the same stop at 1.6200.