FX.co ★ EUR/NZD - Elliott Wave Analysis for August 14 - 2012

Today's Support and Resistance Levels:

S1: 1.5197 R1: 1.5280

S2: 1.5164 R2: 1.5331

S3: 1.5147 R3: 1.5360

Technical Overview:
The fact that we did not break below minor support at 1.5084, but instead broke above resistance at 1.5257 makes the situation much better than we expected it to be before. We should now see minor support at 1.5164 protecting the downside for the next rally higher towards 1.5443 in blue wave iii.
In the larger picture we are looking for a much higher rally as we regard the entire decline from 1.9570 over with the test of 1.4968. If this is the case, we should see a rally back to at least 1.6969 in long term.

Trading Recommendation:
You should be long EUR against NZD from 1.5210 with a 1.4960 stop. Lift the stop to 1.5085. If you are not long EUR already you can buy on a correction down towards 1.5164 with the same stop.