FX.co ★ EUR/NZD - Elliott Wave Analysis for August 2 - 2012

Today's Support and Resistance Levels:

S1: 1.5070 R1: 1.5225

S2: 1.5045 R2: 1.5270

S3: 1.5000 R3: 1.5300

Technical Overview:
The bottoming process is ongoing here. With a new low at 1.5070 the decline from 1.6969 was confirmed once again. Looking at the RSI Indicator we see a very clear divergence building, which indicates that a bottom could be found any time now. Looking at the decline from 1.6969 we can count five clear waves down, which also indicates that a bottom is nearby. However, as long as resistance at 1.5225 protects the upside, we must accept a continuation towards 1.5045 as the next possible bottom target. Only a break above 1.5225 will ease the downside pressure and call for a new rally towards strong resistance near 1.5505.

Trading Recommendation:
Our low risk stop at 1.5115 (a loss of 0.43%) was taken out and we will be looking for a new EUR-buy opportunity either at 1.5050 or upon a break above 1.5225 (buy at 1.5235). One cancels the other. Stop at 1.5000.