FX.co ★ Elliott Wave Analysis of EUR/NZD for September 18, 2013

Today's Support and Resistance levels:

R3: 1.6348

R2: 1.6304

R1: 1.6274

Current Spot:1.6241

S1: 1.6230

S2: 1.6187

S3: 1.6157

Technical summary:

With the clear break below the support at 1.6247 we knew, that the next important support at 1.6117 is in play. Short-term minor resistance at 1.6274 should protect the upside for the next decline towards 1.6187 and 1.6157 before we hit the cluster of supports near 1.6117. That said, we should be aware that this wave C decline from 1.7274 is loosing momentum fast, and, therefore, a bottom could be found at any time now for the next impulsive rally higher towards 1.7274 and higher in the longer term. However, we need a break above 1.6348 to get the first indication that the bottom is in place, while a break above 1.6420 confirms the bottom and the development of the next impulsive rally higher.

Trading recommendation:

The stop at 1.6200 was hit. Buy EUR at 1.6125 or upon a break above 1.6355 (one order done cancels the other). Place stop at 1.6095.