FX.co ★ EUR/NZD - Elliott Wave Analysis for July 18, 2012

Today's Support and Resistance Levels:

Support Resistance

1: 1.5340 1: 1.5505

2: 1.5303 2: 1.5602

3: 1.5245 3: 1.5636

Technical Overview:

Odds is swinging more and more in favor of an important long-term bottom being in place with the test of 1.5303. As we have broken above minor resistance at 1.5410 upside pressure is becoming more pronounced. That showed we still need a break above resistance at 1.5505 to confirm that the bottom is in place at 1.5303 and call for a rally towards at least the 1.5808 - 1.5885 area. However we do expect the coming rally to be much bigger than that.

The short-term risk is a break below 1.5340 that will confirm a new test of the 1.5303 low and possibly even a new low near 1.5245.

Trade Recommendation:

We have just bought EUR against NZD at 1.5425 and will place stop at 1.5300. Take profit at 1.5800