FX.co ★ EUR/NZD - Elliott Wave Analysis for August 7 - 2012

Today's Support and Resistance Levels:

S1: 1.5086 R1: 1.5147

S2: 1.5059 R2: 1.5156

S3: 1.5022 R3: 1.5219

Technical Overview:
Did we finally see an important low with the test of 1.4968? Probably we did, but we need the final confirmation, which comes with a break above minor resistance at 1.5219. A break above 1.5219 will call for a new rally higher towards the top of black wave 4 of the former downtrend at 1.5429. However, as long as resistance at 1.5147 and more importantly at 1.5219 protects the upside, there will be a risk is towards the downside for a deeper decline and a break below 1.5059 would call for a new test of 1.4968 and likely lower.

Trading Recommendation:
We will be on the safe side and only buy EUR against NZD upon a break above 1.5219 (buy at 1.5230) with a stop at 1.4960.