FX.co ★ NZD/USD - Elliott Wave Analysis for August 8 - 2012

NZD/USD - Daily

NZD/USD - 4 Hourly

Today's Support and Resistance Levels:

S1: 0.8110 R1: 0.8157

S2: 0.8086 R2: 0.8170

S3: 0.8060 R3: 0.8181

Technical Overview:
If we first take a look at the larger picture we will see, that after the 0.8842 high, all the declines and rallies made up three wave moves which indicates they are corrective by nature. That could signify about major triangle development. If this view is correct, we still miss the final E-wave in the triangle, which should take us down to at least 0.7800 - 0.7840 area, but it could take us all the way down to the triangle support line near 0.7500.
Looking at the 4 hour chart (the lower chart) we can see, that wave D of the triangle will likely end at 0.8223 and we should soon see a break below 0.8060, which will confirm that wave E is well under way and take us down towards the 0.7800 - 0.7840 area as the first target.

Trading Recommendation:
Sell NZD against USD at 0.8155 with a stop at 0.8225