FX.co ★ EUR/NZD - Elliott Wave Analysis for August 24 - 2012

Today's Support and Resistance Levels:

S1: 1.5412 R1: 1.5470

S2: 1.5371 R2: 1.5516

S3: 1.5323 R3: 1.5552

Technical Overview:
The overall structure was pretty complex since the 1.4968 low even though its underlying structure is impulsive. The overlapping of red wave i and red wave iv leaves us with only impulsive wave pattern, which is the Leading Diagonal. A Leading Diagonal resembles the Ending Diagonal, but wave 1,3 and 5 are all made up of five smaller waves where in the ending diagonal these waves are made up of three waves. But how do we explain that we were able to make a new high above red wave 1 at 1.5443? The only explanation is that red wave 2 becomes an Expanded Flat correction. This would call for a possible move towards 1.5516 before a decline to at least 1.5250 and likely even 1.5194 in red wave 2.
Trading Recommendation:
Our short EUR trade was stopped out at 1.5445, but we will sell EUR again at 1.5510 or upon a break below 1.5428 (sell at 1.5420) - one order cancels the other - with a 1.5585 stop and take profit at 1.5265.